Skyleasing, LLC v. Tejas Avco Inc., D/B/A Houston Southwest Airport

CourtCourt of Appeals of Texas
DecidedAugust 10, 2006
Docket14-05-00212-CV
StatusPublished

This text of Skyleasing, LLC v. Tejas Avco Inc., D/B/A Houston Southwest Airport (Skyleasing, LLC v. Tejas Avco Inc., D/B/A Houston Southwest Airport) 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
Skyleasing, LLC v. Tejas Avco Inc., D/B/A Houston Southwest Airport, (Tex. Ct. App. 2006).

Opinion

Affirmed and Memorandum Opinion filed August 10, 2006

Affirmed and Memorandum Opinion filed August 10, 2006.

In The

Fourteenth Court of Appeals

_______________

NO. 14-05-00212-CV

SKYLEASING, LLC, Appellant

V.

TEJAS AVCO INC., D/B/A HOUSTON SOUTHWEST AIRPORT, Appellee

On Appeal from the 240th District Court

Fort Bend County, Texas

Trial Court Cause No. 04‑CV‑139830

M E M O R A N D U M   O P I N I O N

Appellant, Skyleasing, L.L.C., appeals from an order denying its motion to compel arbitration of its underlying dispute with appellee, Tejas Avco Inc. d/b/a Houston Southwest Airport (Athe Airport@).  Although Skyleasing and the Airport have no agreement to arbitrate, Skyleasing contends that the trial court abused its discretion by refusing to apply the equitable estoppel doctrine to compel arbitration.  We affirm.


I.  Background

The Airport leased space at its facility to ADS Aviation, Inc. (AADS@) pursuant to a written lease.  Charles Cohen, president of ADS, guaranteed performance of ADS=s obligations under the lease.  The lease provided that the Airport would sell fuel to ADS at Aflight school@ prices.  The lease also authorized ADS to sublease hangar space.  ADS entered into a separate agreement with Skyleasing whereby ADS housed airplanes owned by Skyleasing at the Airport=s facility.  Skyleasing had no contract with the Airport.  However, at ADS=s request, the Airport provided fuel for the airplanes.

The Airport eventually declared a default on the lease.  Allegedly, ADS failed to make all the lease and fuel payments.  The Airport also filed AMechanic=s and Materialman=s@ liens on the planes owned by Skyleasing.  In response, Skyleasing filed a AMotion for Judicial Review of Documentation Purporting to Create a Lien@ contending the document purporting to create a lien on one plane is fraudulent.

The Airport then filed suit against ADS, Cohen, and Skyleasing.[1]  In its live petition, the Airport alleges ADS and Cohen breached the lease by failing to make lease and fuel payments.  The Airport asserts a quantum meruit claim against Skyleasing for the reasonable value of the fuel and storage services provided to its planes.  The Airport also requested a temporary injunction to prevent ADS and Skyleasing from transferring or selling the planes.  Apparently, Skyleasing was in the process of selling some of the planes when the Airport filed suit.  The trial court consolidated Skyleasing=s AMotion for Judicial Review of Documentation Purporting to Create a Lien@ with the Airport=s suit.


Skyleasing filed a counterclaim against the Airport, an officer of the Airport, and an employee of the Airport, alleging slander of title, fraudulent lien, tortious interference with prospective business relations, and conspiracy.  Skyleasing contends the Airport=s allegedly improper lien interfered with Skyleasing=s prospective sale of one airplane.  Skyleasing requested a temporary injunction dissolving all liens and also seeks monetary damages.  Skyleasing also filed a cross claim against ADS seeking Acontribution@ to the extent Skyleasing is ultimately found liable to the Airport for any charges.

Subsequently, the trial court granted the temporary injunction requested by the Airport and prohibited ADS and Skyleasing from transferring or selling the planes.  The trial court denied the temporary injunction requested by Skyleasing.

The lease contains a provision requiring arbitration of Aany controversy or claim between the parties hereto relating to this lease, including, without limitation, any claim based on or arising from an alleged tort.@  Therefore, the Airport, ADS, and Cohen agreed to arbitrate their dispute, and the trial court signed an order compelling arbitration.  Skyleasing then filed a motion to compel arbitration of its dispute with the Airport.  Although Skyleasing is not a party to the lease, it sought to compel arbitration under the equitable estoppel doctrine.  The trial court denied Skyleasing=s motion and severed the Airport=s claims against ADS and Cohen from this case.  Skyleasing filed this interlocutory appeal from the order denying its motion to compel arbitration.[2]

II.  Equitable Estoppel Doctrine


Apparently, all parties agree the Texas Arbitration Act (ATAA@) governs Skyleasing=s motion to compel arbitration.  Under the TAA, a court shall order the parties to arbitrate if the party seeking to compel arbitration proves (1) a valid, enforceable agreement to arbitrate exists, and (2) the claims asserted fall within the scope of the agreement.  Valero Energy Corp. v. Teco Pipeline Co., 2 S.W.3d 576, 581 (Tex. App.CHouston [14th Dist.] 1999, no pet.); see Tex. Civ. Prac. & Rem. Code Ann. ' 171.021(a) (Vernon 2005).  The Airport and Skyleasing have no agreement to arbitrate.  Skyleasing is not a party to the lease between the Airport and ADS, and the Airport and Skyleasing have no other contractual relationship.  Nevertheless, in its sole issue, Skyleasing contends it is entitled to compel arbitration under the doctrine of equitable estoppel.


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