Robert S. Bennett, Individually and the Bennett Law Firm, P.C. v. Stephen T. Leas

Court of Appeals of Texas·Decided June 26, 2008·No. 13-06-00469-CV·Published

Opinion

NUMBER 13-06-469-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

ROBERT S. BENNETT, INDIVIDUALLY AND THE BENNETT LAW FIRM, P.C., Appellants,

v.

STEPHEN T. LEAS, Appellee.

On appeal from the County Court at Law No. 4 of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Chief Justice Valdez and Justices Yañez and Vela Memorandum Opinion by Justice Yañez

In this interlocutory appeal, appellants, Robert S. Bennett, individually, and the

Bennett Law Firm, P.C. (collectively, “Bennett”), challenge the trial court’s denial of their

request to compel arbitration in this legal malpractice action filed against Bennett by appellee, Stephen T. Leas.1 By five issues, appellants contend the trial court erred in (1)

determining that some of the matters sought to be arbitrated fell outside the scope of the

arbitration agreement; (2) applying the “personal injury” exception to arbitration; (3) finding

that Bennett waived the arbitration provision; and (4) finding the arbitration clause

unenforceable as against public policy. We affirm.

Background

Leas, an attorney, asked Bennett to represent him in connection with several

pending grievance matters involving Maria H. Rodriguez.2 Leas and Bennett entered into

an “Attorney Retainer Agreement” regarding the representation; the agreement contained

an arbitration clause. A few weeks later, Leas asked Bennett to represent him in several

other grievances filed against Leas by Gloria Ruel Herrera, Daniel Alvarez, and Candelaria

Reyes.3

Bennett contends that Leas failed to timely pay his invoices for legal services, and

in December 2003, Bennett sought to initiate arbitration. In March 2004, Leas sued

Bennett, requesting a declaratory judgment that Bennett was not entitled to arbitration.

Bennett filed a plea in abatement, requesting abatement of Leas’ petition and enforcement

1 The Texas Arbitration Act (TAA) expressly grants interlocutory jurisdiction over denials of applications to com pel arbitration. T EX . C IV . P RAC . & R EM . C OD E A N N . § 171.098(a)(1) (Vernon 2005); see In re D. W ilson Constr. Co., 196 S.W .3d 774, 778-79 (Tex. 2006) (orig. proceeding) . Appellee asserts that “it is undisputed that only the Texas Arbitration Act is applicable.” Appellants do not dispute this assertion. The arbitration paragraph provides for arbitration “adm inistered by the Am erican Arbitration Association (AAA)” “in accordance with the laws of the State of Texas.”

2 The m atters referenced in the Rodriguez “Attorney Retainer Agreem ent” are “State Bar of Texas Grievance Matters; Appeal and Motion to Reconsider – S2080103329; Maria E. Rodriguez – Stephen T. Leas and BODA Case No. 26618; Stephen T. Leas v. Commission for Lawyer Discipline.”

3 Although the record contains letters of representation and “Attorney Retainer Agreem ents” between Bennett and Leas regarding these m atters, the agreem ents are not signed by Leas.

2 of the arbitration agreement.

Following a hearing, the trial court signed an order abating both Leas’ lawsuit and

Bennett’s request for arbitration until the underlying grievance matters were completed.

Bennett attempted to appeal the trial court’s order; this Court dismissed the appeal for want

of jurisdiction.4 Bennett filed a petition for review with the supreme court, but shortly

thereafter, Leas advised the trial court that the underlying matters had been completed.

The trial court returned the case to its docket.

On April 18, 2006, Bennett again requested that the trial court order arbitration.

Following a hearing, the trial court denied Bennett’s request for arbitration. The trial court

issued findings of fact and conclusions of law on September 19, 2006. The trial court’s

findings and conclusions included the following:

1. The Plaintiff [Leas] has alleged causes of action alleging legal malpractice, breach of fiduciary duty, fraud and breach of contract against Defendant [Bennett] concerning four (4) separate and independent cases in which Defendant represented Plaintiff. They are known as “Rodriguez,” “Herrera,” “Alvarez,” and “Reyes.”

2. There is no written agreement signed by the parties that involve any issues relating to the “Herrera,” “Alvarez,” and “Reyes” matters.

3. The Defendant, in a hearing before this Court on June 10, 2004, had stipulated to this Court that the “Rodriguez” contract only concerned the “Rodriguez” matter and no other matter.

4. There is a written contract between the parties concerning only the “Rodriguez” matter that does contain an arbitration clause under the Texas Arbitration Act (TAA).

5. One of the causes of action alleged by the Plaintiff concerning the “Rodriguez” matter is for a personal injury.

4 See Robert S. Bennett, Individually, et al. v. Stephen T. Leas, No. 13-04-362-CV, (Tex. App.–Corpus Christi March 17, 2005) (per curiam ) (m em o op.)(not designated for publication).

3 ....

7. The contract was not signed by either party’s attorney of record.

8. The Plaintiff was not advised in writing by the Defendant to consult an attorney prior to signing the agreement.

9. The Plaintiff was not independently represented when the agreement was made between the parties.

10. The arbitration clause in the ‘Rodriguez’ matter attempts to limit the liability of the Defendant for malpractice.

....

19. The Texas Civil Practice and Remedy [sic] Code § 171.001, states that, for an arbitration agreement to be enforceable, that there must exist a written agreement to arbitrate between the parties. Therefore, there being no written contract with an arbitration agreement that exist[s] between the parties concerning the “Herrera,” “Alvarez,” and “Reyes” matters, the Defendant is not entitled to compel arbitration on those matters.

20. The arbitration clause in the “Rodriguez” matter is in violation of the Texas Rules of Professional Conduct, Rule 1.08(g), and as such is against public policy and is therefore unenforceable.

21. The Defendant has waived any right to arbitrate in the “Rodriguez” matter, by substantially invoking the judicial process resulting in the Plaintiff suffering actual prejudice.

Standard of Review and Applicable Law

When reviewing by interlocutory appeal an order denying arbitration under the TAA,

we apply a de novo standard to legal determinations and a “no evidence” standard to

factual determinations.5 Under the “no evidence” standard, we view the evidence in the

light most favorable to the challenged finding and indulge every reasonable inference that

5 TMI, Inc. v. Brooks, 225 S.W .3d 783, 791 (Tex. App.–Houston [14th Dist.] 2007, pet. denied).

4 would support it.6 We must credit favorable evidence and disregard contrary evidence only

if a reasonable factfinder could do so.7 A legal sufficiency challenge to the findings of fact

will not be sustained if there is more than a scintilla of evidence to support the findings.8

In conducting a factual sufficiency review, appellate courts may set aside a trial court’s

finding only if it is so contrary to the overwhelming weight of the evidence as to be clearly

wrong or unjust.9

Under the TAA, a party seeking to compel arbitration must (1) establish the

existence of a valid, enforceable arbitration agreement and (2) show that the claims

asserted fall within the scope of that agreement.10 If the movant establishes that an

arbitration agreement governs the dispute, the burden then shifts to the party opposing

Free access — add to your briefcase to read the full text and ask questions with AI

Robert S. Bennett, Individually and the Bennett Law Firm, P.C. v. Stephen T. Leas, (Tex. Ct. App. 2008).

Robert S. Bennett, Individually and the Bennett Law Firm, P.C. v. Stephen T. Leas (Robert S. Bennett, Individually and the Bennett Law Firm, P.C. v. Stephen T. Leas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.