Tecore, Inc. v. AirWalk Communications, Inc.

418 S.W.3d 374, 2013 WL 6252501, 2013 Tex. App. LEXIS 14650
CourtCourt of Appeals of Texas
DecidedDecember 4, 2013
Docket05-12-00130-CV
StatusPublished
Cited by3 cases

This text of 418 S.W.3d 374 (Tecore, Inc. v. AirWalk Communications, Inc.) 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
Tecore, Inc. v. AirWalk Communications, Inc., 418 S.W.3d 374, 2013 WL 6252501, 2013 Tex. App. LEXIS 14650 (Tex. Ct. App. 2013).

Opinion

OPINION

Opinion by

Justice MYERS.

Tecore, Inc. appeals the trial court’s judgment confirming an arbitration award in favor of AirWalk Communications, Inc. Tecore brings three issues on appeal contending (1) the trial court erred by finding Tecore submitted its jurisdictional objection to the American Arbitration Association and to the appointed arbitrator; (2) the trial court erred by determining there was an arbitration agreement and that the parties’ claims fell within the scope of that agreement; and (3) the parties’ contract is ambiguous regarding whether the parties intended to include an arbitration clause. We affirm the trial court’s judgment.

BACKGROUND

Tecore manufactures cellular networks using equipment provided by other companies, including AirWalk. Tecore would purchase equipment from AirWalk, integrate the equipment into its products, and sell those products to its customers.

On January 26, 2005, Tecore and Air-Walk entered into the Distribution and Services Agreement, or DSA, 1 which governed AirWalk’s relationship with Tecore as an integrator and reseller of AirWalk’s products. The DSA contained no mention of arbitration. The DSA’s term was four years and would renew automatically for one-year periods unless one party notified the other party in writing of its intent not *378 to renew at least 180 days before the expiration of the term. If the term was not renewed, the DSA provided that certain terms would survive termination.

On July 29, 2008, AirWalk notified Te-core by letter that it would not renew the DSA when it expired on January 26, 2009. In the letter, AirWalk stated it wanted to enter into a new agreement with Tecore, and AirWalk attached a proposed DSA to the letter. AirWalk also stated, “In the meantime, and until a new agreement is in place, we intend to honor the terms of the current Agreements.” 2 AirWalk’s proposed DSA included an arbitration provision.

The parties continued to negotiate a new DSA, but never reached an agreement. AirWalk insisted that the new DSA be based on the proposed DSA AirWalk sent Tecore in July 2008, while Tecore insisted that the parties renew the existing DSA with only minor changes. January 26, 2009 came and went without the parties reaching a new agreement.

In June 2009, Tecore told AirWalk it wanted to purchase some of AirWalk’s products for resale to a government program. David Oberholzer, one of AirWalk’s vice presidents, met with Tecore’s chief financial officer, Joe Gerrity, to discuss a new DSA for the transaction. According to an e-mail from Oberholzer to AirWalk’s president, Oberholzer told Gerrity that AirWalk would like for Tecore to resell AirWalk’s products, but only under the terms and conditions of the July 2008 proposed DSA. Oberholzer also said AirWalk was open to some modifications of the proposed DSA, but “if Tecore cannot work from the new DA document then we have no way to sell Tecore our products for resale.”

On June 30, 2009, AirWalk sent Tecore a quotation of $471,000 for the products Te-core wanted to purchase. The quotation contained a price sheet that also listed seven numbered terms and conditions and stated the quotation was “subject to the following terms and conditions and as provided in Exhibit A attached hereto, the terms of which are incorporated herein.” The first numbered term and condition on the price-sheet page stated that “Buyer will place a purchase order ... which references the Quotation Number provided above and the terms and conditions contained herein.” Exhibit A to the quotation was styled “AirWalk Communications, Inc. Terms and Conditions of Sale.” Section 7(d) of Exhibit A contained an arbitration provision:

(d) Governing Law and Jurisdiction. This Agreement shall be governed by and construed under the laws of the State of Texas, U.S.A. Any dispute or claim arising out of or relating to this Agreement, or the breach hereof, shall be settled in Dallas, Texas by arbitration administered by the American Arbitration Association, in accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s), including attorneys’ fees and costs of arbitration, may be entered in any court having jurisdiction thereof.

(Emphasis added.) The next day, July 1, 2009, Tecore sent AirWalk a purchase order; the purchase order referenced the quotation number but did not mention the terms and conditions. Tecore submitted revised purchase orders in July and early August that also referenced the quotation number. All purchase orders were signed by Gerrity for Tecore. In August, Air- *379 Walk sent Tecore its “Purchase Order Acceptance,” which stated, “Terms and conditions of sale are per AirWalk Communications, Inc. Standard Terms and Conditions of Sale unless otherwise agreed to in writing.” The purchase order acceptance was signed by a vice president for AirWalk.

Subsequently, problems arose concerning the timeliness of AirWalk’s delivery of its products, the quality of its products, and Tecore’s payment of the purchase price for the products. AirWalk filed a demand for arbitration with the American Arbitration Association (AAA). Tecore then filed its “Answering Statement and Demand for Termination.” Tecore requested that the AAA immediately determine whether there was jurisdiction for the arbitration before it appointed an arbitrator. In the alternative, Tecore requested that any arbitrator appointed to the ease “address the issue of jurisdiction as a preliminary matter.” The AAA declined to rule on the jurisdictional objection and appointed an arbitrator to hear the case.

The arbitrator held a hearing on Te-core’s jurisdictional objections and found the disputes were “subject to binding arbitration pursuant to AAA Rules and Texas law” and that AAA and the arbitrator had jurisdiction over the arbitration. The case proceeded to a hearing before the arbitrator, with Tecore repeatedly objecting to the jurisdiction. The arbitrator heard the parties’ evidence and argument. On March 18, 2011, the arbitrator issued the Final Award, which ruled in favor of Air-Walk on its breach of contract claim and determined that “[t]he Distribution Agreements at issue were properly terminated by AirWalk and expired in accordance with their respective provisions.” The arbitrator awarded AirWalk $285,181.25 in damages, $199,321 in attorney’s fees, and $6183.64 in costs.

The parties then filed cross-petitions in state district court in Dallas County for confirmation and for vacation of the arbitrator’s award. After hearing the parties’ evidence and argument, the trial court granted AirWalk’s motion to confirm the arbitration award, denied Tecore’s motion to vacate the award, and entered judgment on the arbitration award. The court also made findings of fact in support of these rulings. In the findings, the court determined that Tecore had submitted the jurisdictional issue of arbitrability to the AAA and the arbitrator and that the arbitrator did not exceed her authority by determining the arbitrability of the claims and overruling Tecore’s objection.

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Cite This Page — Counsel Stack

Bluebook (online)
418 S.W.3d 374, 2013 WL 6252501, 2013 Tex. App. LEXIS 14650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tecore-inc-v-airwalk-communications-inc-texapp-2013.