Royston, Rayzor, Vickery & Williams, L.L.P. v. Lopez

443 S.W.3d 196, 2013 Tex. App. LEXIS 7843, 2013 WL 3226847
CourtCourt of Appeals of Texas
DecidedJune 27, 2013
Docket13-11-00757-CV, 13-12-00023-CV
StatusPublished
Cited by11 cases

This text of 443 S.W.3d 196 (Royston, Rayzor, Vickery & Williams, L.L.P. v. Lopez) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Royston, Rayzor, Vickery & Williams, L.L.P. v. Lopez, 443 S.W.3d 196, 2013 Tex. App. LEXIS 7843, 2013 WL 3226847 (Tex. Ct. App. 2013).

Opinions

OPINION

Opinion by Justice BENAVIDES.

Royston, Rayzor, Vickery, & Williams, LLP (“Royston”), seeks to set aside an order denying its motion to compel arbitration by appeal in appellate cause number 13-11-00757-CV and by petition for writ of mandamus in appellate cause number 13-12-00023-CV. We affirm the order of the trial court in the appeal and we deny the petition for writ of mandamus.

I. Background

Francisco “Frank” Lopez retained Roy-ston to represent him regarding a common law marriage and divorce and to pursue claims against Lopez’s alleged common law wife after she won $11 million playing the lottery. The “Employment Contract” between Lopez and Royston gave Royston a twenty percent contingency fee in any gross recovery before expenses, provided that Lopez was responsible for all costs and expenses regardless of outcome, and gave Royston the right to withdraw as counsel at any time for any reason. The agreement contained the following arbitration provision:

While we would hope that no dispute would ever arise out of our representation or this Employment Contract, you and the firm agree that any disputes arising out of or connected with this agreement (including, but not limited to the services performed by any attorney under this agreement) shall be submitted to binding arbitration in Nueces County, Texas, in accordance with appropriate statutes of the State of Texas and the Commercial Arbitration Rules of the American Arbitration Association (except, however, that this does not apply to any claims made by- the firm for the recovery of its fees and expenses).

Royston filed suit on behalf of Lopez against his common-law wife; however, the suit was settled after court-ordered mediation. Lopez thereafter brought suit against Royston for malpractice, gross negligence, fraud, breach of contract, and negligent misrepresentation. Lopez asserted that Royston “provided alcoholic beverages” to him at the mediation, told him the settlement was in his best interests, and encouraged him to take a “meager” settlement, even though there was ample evidence that the parties had a common law marriage and an electronic message from Lopez’s ex-wife showed that she had agreed “to a much larger settlement amount.” Lopez asserted Royston “failed to zealously assert and prove” that he had damage claims that entitled him to either fifty percent of the lottery winnings as community property due to the then-existing common law marriage, or in the alternative, the “$3,200,000.00 he was entitled to pursuant to the text message from his ex-wife.”

Royston moved to compel arbitration under the Texas Arbitration Act.(“TAA”) and, by supplemental motion, for arbitration under the common law. See Tex. Civ. PRAC. & Rem.Code Ann. § 171.Ó01-.098 (West 2011). Lopez responded to the motion to compel and supplemental motion raising numerous affirmative defenses to arbitration. After a hearing where the trial court considered the motions to compel and the responses thereto, which were supported only by the Employment Con[200]*200tract, the trial court denied Roystoris motion to compel arbitration.

This appeal and original proceeding ensued. By orders previously issued in these cases, the Court consolidated these two matters and ordered the underlying litigation to be stayed pending further order of this Court, or until the cases are finally decided. See Tex.R.App. P. 29.5(b), 52.10(b). The matter has been fully briefed by both parties, and the matter has been submitted to the Court at oral argument.

By five issues, which we have summarized and restated, Royston contends that: (1) the trial court abused its discretion in denying the motion to compel arbitration; (2) a legal malpractice claim should not be considered to be a personal injury claim, and therefore subject to statutory requirements for arbitration agreements under the TAA;1 (3) the trial court abused its discretion in denying arbitration if its decision was based on an advisory ethics opinion requiring that lawyers provide clients with information relative to litigation and arbitration before entering an arbitration agreement; (4) the arbitration agreement was not illusory; and (5) the arbitration agreement was not unconscionable.

II. Mandamus

Mandamus is an “extraordinary” remedy. In re Sw. Bell Tel. Co., L.P., 235 S.W.3d 619, 623 (Tex.2007) (orig. proceeding); see In re Team Rocket, L.P., 256 S.W.3d 257, 259 (Tex.2008) (orig. proceeding). To obtain mandamus relief, the relator must show that the trial court clearly abused its discretion and that the relator has no adequate remedy by appeal. In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 135-36 (Tex.2004) (orig. proceeding); see In re McAllen Med. Ctr., Inc., 275 S.W.3d 458, 462 (Tex.2008) (orig. proceeding). A trial court abuses its discretion if it reaches a decision so arbitrary and unreasonable as to constitute a clear and prejudicial error of law, or if it clearly fails to correctly analyze or apply the law. In re Cerberus Capital Mgmt., L.P., 164 S.W.3d 379, 382 (Tex.2005) (orig. proceeding) (per curiam); Walker v. Packer, 827 S.W.2d 833, 839 (Tex.1992) (orig. proceeding). To satisfy the clear abuse of discretion standard, the relator must show that the trial court could “reasonably have reached only one decision.” Liberty Nat’l Fire Ins. Co. v. Akin, 927 S.W.2d 627, 630 (Tex.1996) (quoting Walker, 827 S.W.2d at 840).

Arbitration clauses may be enforced under Texas common law. In re Swift Transp. Co., 311 S.W.3d 484, 491 (Tex.App.-El Paso 2009, orig. proceeding); In re Green Tree Servicing LLC, 275 S.W.3d 592, 599 (Tex.App.-Texarkana 2008, orig. proceeding); see L.H. Lacy Co. [201]*201v. City of Lubbock, 559 S.W.2d 348, 351-52 (Tex.1977) (common law arbitration and statutory arbitration are “cumulative” and part of a “dual system”); Carpenter v. N. River Ins. Co., 436 S.W.2d 549, 553 (Tex.Civ.App.-Houston [14th Dist.] 1969, writ refd n.r.e.) (“In the many other states having arbitration statutes similar to our 1965 statute, it is almost uniformly held that the statutory remedy is cumulative and that the common law remedy remains available to those who choose to use it.”). Mandamus is the appropriate procedure by which we may review the trial court’s ruling on a motion to compel arbitration under the common law. See In re Swift Transp. Co., 311 S.W.3d at 491; In re Paris Packaging, 136 S.W.3d 723, 727 & n. 7 (Tex.App.-Texarkana 2004, orig. proceeding).

III. Appeal

Under the TAA, a party may appeal an interlocutory order that denies an application to compel arbitration made under Section 171.021. See Tex. Civ. PRAC. & Rem.Code Ann. § 171.098(a)(1) (West 2011).

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443 S.W.3d 196, 2013 Tex. App. LEXIS 7843, 2013 WL 3226847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royston-rayzor-vickery-williams-llp-v-lopez-texapp-2013.