SSP Holdings Ltd. Partnership v. Lopez

432 S.W.3d 487, 2014 WL 1688112, 2014 Tex. App. LEXIS 4605
CourtCourt of Appeals of Texas
DecidedApril 30, 2014
DocketNo. 04-13-00712-CV
StatusPublished
Cited by9 cases

This text of 432 S.W.3d 487 (SSP Holdings Ltd. Partnership 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
SSP Holdings Ltd. Partnership v. Lopez, 432 S.W.3d 487, 2014 WL 1688112, 2014 Tex. App. LEXIS 4605 (Tex. Ct. App. 2014).

Opinion

OPINION

SANDEE BRYAN MARION, Justice.

There have been two arbitration proceedings arising from the underlying lawsuit. This accelerated appeal is from the trial court’s order vacating an arbitration panel’s final decision in favor of appellants in the second proceeding.1 In its order, the trial court found that the final decision was procured by undue means, the arbitrators engaged in misbehavior, and the arbitrators exceeded their powers. On appeal, appellants challenge all three grounds for the trial court’s order. We reverse the trial court’s order vacating the arbitration decision, remand the cause, and order the trial court to confirm the arbitration decision.

BACKGROUND

Yolanda Lopez and her husband sued SSP Holdings Limited Partnership (“SSPH-LP”) for personal injuries Yolanda allegedly suffered in the course and scope of her employment. The trial court ordered Yolanda to initiate arbitration proceedings on her claims against the company, but stayed her husband’s loss of consortium claim. In the first arbitration proceeding, SSPH-LP moved for summary judgment on the grounds that Yolanda’s negligence and premises liability claims were time-barred under the terms of the parties’ arbitration agreement. In a February 12, 2008, order, arbitrator Lynne Gomez denied the motion for summary judgment concluding the applicable limitations period may have been tolled. SSPH-LP moved for reconsideration, and Yolanda responded.

[490]*490On March 17, 2008, Gomez signed an order granting the motion for reconsideration and the motion for summary judgment. In this order, Gomez noted Yolanda was not arguing the limitations period was tolled, but instead, she argued her claim was not time-barred. Gomez disagreed with Yolanda’s arguments, concluded Yolanda did not initiate arbitration until almost five years after her injury occurred, and therefore, her claim was not timely filed in accordance with the parties’ agreed arbitration procedure. Yolanda appealed. In an April 9, 2010, final decision, the arbitration appeals panel determined Yolanda’s claims were barred by the statute of limitations. The trial court denied Yolanda’s motion to vacate the arbitration panel’s final decision, and, on October 12, 2010, confirmed the final decision, and dismissed Yolanda’s claims and causes of action “with prejudice to their re-filing, in whole or in part.” The court did not dismiss Yolanda’s husband’s claim.

After the first arbitration, Yolanda and her husband amended their suit to add Stripes LLC2 as a defendant, and Yolanda rejoined the lawsuit. Stripes filed an application for an order for arbitration, which the trial court granted. In its March 1, 2012, order, the trial court ordered that Stripes “may initiate proceedings with the American Arbitration Association by filing the appropriate demand and other notices .... ” The order also stated that Stripes’ failure to timely initiate arbitration proceedings “SHALL result in denial of [Stripes’ application], and the resumption of all proceedings before this Court.”

Stripes served its demand for the second arbitration in which it described its claim as follows:

Stripes LLC seeks no affirmative relief whatsoever in this arbitration but only a declaration under the Texas Uniform Declaratory Judgment Act ... that it is not liable to Respondent, Mrs. Lopez on any claims she has asserted or may assert against it based on her alleged October 18, 2002 on-the-job injury. ... Stripes LLC seeks only a declaration that it is not liable to Mrs. Lopez on any claims against it because (1) such claims are barred by the applicable statute of limitations (the Texas two-year statute of limitations in Section 16.003(a) of the Texas Civil Practice and Remedies Code); (2) such claims are barred by res judicata and collateral estoppel from the April 9, 2010 Final Award On Appeal ... and the October 12, 2010 Order Confirming Arbitration Award[;] and (3) such claims are barred because Claimant Stripes LLC is the successor in interest to SSP Holdings Limited Partnership, as admitted in Paragraph 6 of Exhibit A. Stripes LLC is not seeking any attorney’s fees, costs or expenses, or any other form of affirmative relief.

In the arbitration proceeding, Stripes again moved for summary judgment and requested a declaratory judgment on its claims as described above.3 The hearing [491]*491arbitrator denied the motion on the grounds that the parties’ arbitration agreement did not contemplate declaratory judgments or give the arbitrator authority to issue enforceable declaratory judgments. Stripes moved for reconsideration and the hearing arbitrator found that although he had the authority to render a declaratory decision, he concluded he could not do so in this case because the case involved tort liability. Stripes then initiated an appellate arbitration proceeding before a panel of appellate arbitrators.

The arbitration panel determined the hearing arbitrator had the authority to render declaratory decisions in tort actions. The panel then concluded (1) Yolanda’s claims were barred by the applicable statute of limitations, (2) re-arbitration of matters already arbitrated in the first arbitration were barred by res judicata, collateral estoppel, or issue/claim preclusion, and (3) Yolanda’s claims were barred by the arbitration panel’s April 9, 2010, award and the trial court’s October 12, 2010, order confirming the decision.

Back in the trial court, the Lopezes filed a motion to vacate the arbitration award and moved for sanctions, and Stripes responded. The trial court vacated the award for the following reasons:

(1)The final award was procured by undue means because “Stripes submitted only defensive issues to arbitration rather than the entirety of the dispute as had been requested by [Stripes] in its Application for Order for Arbitration, and as had been ordered by the” trial court;
(2) The arbitrators engaged in misbehavior “by which the rights of [Yolanda] have been prejudiced, making vacation of the Award proper under 9 U.S.C. § 10(a)(3),” and
(3) The arbitrators “exceeded their powers, or so imperfectly executed them, that a mutual, final, and definite award upon the subject matter submitted was not made, making vacation of the Award also proper under 9 U.S.C. § 10(a)(4).”

The trial court ordered that all issues raised on appeal be reheard before a new panel of arbitrators. The court denied sanctions. Stripes now appeals.

JURISDICTION

As a threshold matter, Yolanda contends this court lacks jurisdiction over this appeal because the arbitration decision is interlocutory and no statute authorizes an appeal. We disagree. The Texas Civil Practice and Remedies Code, which provides as follows, authorizes an interlocutory appeal such as the one here:

In a matter subject to the Federal Arbitration Act (9 U.S.C. Section 1 et seq.), a person may take an appeal or writ of error to the court of appeals from the judgment or interlocutory order of a district court, county court at law, or county court under the same circumstances that an appeal from a federal

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432 S.W.3d 487, 2014 WL 1688112, 2014 Tex. App. LEXIS 4605, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ssp-holdings-ltd-partnership-v-lopez-texapp-2014.