Weber v. Hall

929 S.W.2d 138, 1996 Tex. App. LEXIS 4106, 1996 WL 515482
CourtCourt of Appeals of Texas
DecidedSeptember 12, 1996
Docket14-96-00324-CV
StatusPublished
Cited by14 cases

This text of 929 S.W.2d 138 (Weber v. Hall) 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
Weber v. Hall, 929 S.W.2d 138, 1996 Tex. App. LEXIS 4106, 1996 WL 515482 (Tex. Ct. App. 1996).

Opinion

OPINION

DRAUGHN, Justice.

In this original proceeding, relators seek a writ of mandamus ordering the respondent to vacate the order of December 15, 1995 staying proceedings pending binding arbitration. We conditionally grant the writ.

Relators are plaintiffs in a suit against their former employer, Universal Computer Systems, and other related entities. In this suit, relators allege breach of contract, fraud, conspiracy, conversion, unconscionability, and quantum meruit. Relators had signed employment agreements which contained an arbitration clause. Every year relators also signed sales plans/agreements which specified their duties and commissions for that year. The arbitration clause in the Employment Agreement states, “In the Event of any controversy or dispute between Employer and Employee as to all or any part of this Agreement, such dispute shall be settled by arbitration_” (emphasis added). Defendants filed a motion to compel arbitration of all claims based on the arbitration clause in the Employment Agreement. The trial court granted this motion and stayed proceedings pending disposition of this original proceeding.

Because relators claim their causes of action arise from the sales agreements and not from the Employment Agreement, rela-tors contend the trial court abused its discretion in compelling arbitration. Mandamus relief is available if the trial court abuses its discretion, either in resolving factual issues or in determining legal principles. Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992). A trial court abuses its discretion if “it reaches a decision so arbitrary and unreasonable as to amount to a clear and prejudicial error of law.” Johnson v. Fourth Court of Appeals, 700 S.W.2d 916, 917 (Tex.1985). When alleging that a trial court abused its discretion in its resolution of factual issues, the party must show the trial court could reason *141 ably have reached only one decision. Id. at 918. As to determination of legal principles, an abuse of discretion occurs if the trial court clearly fails to analyze or apply the law correctly. Walker, 827 S.W.2d at 840.

In determining whether the writ should issue, we must further determine whether the party has an adequate remedy by appeal. Id. Mandamus is intended to be an extraordinary remedy, only available in limited circumstances “involving manifest and urgent necessity and not for grievances that may be addressed by other remedies.” Holloway v. Fifth Court of Appeals, 767 S.W.2d 680, 684 (Tex.1989). An appellate remedy is not inadequate merely because the party may incur more expense and delay than in obtaining the writ. Walker, 827 S.W.2d at 842. A party loses its right to have its dispute resolved by litigation when it is compelled to arbitrate in the absence of an agreement to do so. Freis v. Canales, 877 S.W.2d 283, 284 (Tex.1994). Accordingly, we hold that relator has no adequate remedy by appeal. Id.

Relators contend the trial court abused its discretion in compelling arbitration because the arbitration clause does not extend to plaintiffs’ claims and does not apply to many of the defendants who were not parties to the Employment Agreement. Alternatively, relators claim the Employment Agreement is unenforceable. We turn first to relators’ contention that the arbitration clause does not extend to relators’ claims.

The Federal Arbitration Act provides that an arbitration provision in any contract involving commerce “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2. Once it is determined the parties agreed to arbitrate certain disputes, a court must compel arbitration on those issues made part of the agreement. Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 219, 105 S.Ct. 1238, 1242, 84 L.Ed.2d 158 (1985); Belmont Constructors, Inc. v. Lyondell Petrochemical Co., 896 S.W.2d 352, 356 (Tex.App.—Houston [1st Dist.] 1995, no writ). Whether the parties have agreed to arbitrate is a question of fact for the trial court. Belmont, 896 S.W.2d at 356.

Arbitration of disputes is strongly favored under both federal and state law. Moses H. Cone Memorial Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24, 103 S.Ct. 927, 941, 74 L.Ed.2d 765 (1983); Prudential Securities Inc. v. Marshall, 909 S.W.2d 896, 898 (Tex.1995). When a party asserts a right to arbitration under the Federal Arbitration Act, the question whether a dispute is subject to arbitration is decided under federal law. Marshall, 909 S.W.2d at 899 (citing Genesco, Inc. v. T. Kakiuchi & Co., 815 F.2d 840, 844 (2d Cir.1987)). In determining whether claims fall within the scope of an arbitration agreement, a court must focus on the factual allegations of the complaint, rather than on the legal causes of action asserted. Marshall, 909 S.W.2d at 900. The burden is on the party opposing arbitration to show that their claims fall outside the scope of the arbitration agreement. Id.

The question whether a claim is arbitrable is decided on the basis of the existence of an arbitration provision that, on its face, appears broad enough to encompass the parties’ claims. Mar-Len of Louisiana, Inc. v. Parsons-Gilbane, 773 F.2d 633, 635 (5th Cir.1985). In reviewing the language of the provision, a court must nevertheless consider the presumption in favor of arbitrability:

A presumption of arbitrability exists requiring that whenever the scope of an arbitration clause is fairly debatable or reasonably in doubt, the court should decide the question of construction in favor of arbitration. The weight of this presumption is heavy: arbitration should not be denied “unless it can be said with positive assurance that an arbitration clause is not susceptible of an interpretation that could cover the dispute at issue.”

Id. at 636 (citations omitted); Neal v. Hardee’s Food Systems, Inc., 918 F.2d 34, 37 (5th Cir.1990).

An arbitration clause will be interpreted under contract principles. Id. at 37.

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929 S.W.2d 138, 1996 Tex. App. LEXIS 4106, 1996 WL 515482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weber-v-hall-texapp-1996.