law-FAA-grounds-for-vacature-and-absence-of-agreement-to-arbitrate | FAA or TAA | FAA applicability |
Interstate commerce as basis for application of FAA | FAA enforcement by mandamus | FAA vs TAA federal
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Exclusive grounds to vacate an arbitrator's award under the FAA.
In its first issue, Rapid asserts the trial court erred in vacating the arbitrator's award because Transamerica
did not establish one of the exclusive grounds to vacate an arbitrator's award under the FAA. See 9 U.S.C.S.
§ 10. Transamerica responds that the arbitrator exceeded his authority by purporting to bind Transamerica.
Transamerica explains that it never agreed to arbitrate its disputes with Rapid and therefore cannot be
bound by the arbitrator's order.
The court of appeals reviews de novo a trial court's decision to confirm or vacate an arbitration award under
the FAA. Myer v. Americo Life, Inc., 232 S.W.3d 401, 407 (Tex. App.--Dallas 2007, no pet.).
A district court may vacate an award under the FAA only if (1) the award was procured
by fraud, corruption, or undue means; (2) there was evidence of partiality or corruption
among the arbitrators; (3) the arbitrators were guilty of misconduct that prejudiced the
rights of a party; or (4) the arbitrators exceeded their powers. 9 U.S.C.S. § 10(a).
Transamerica invokes the fourth ground for vacatur, asserting the arbitrator had no authority to bind
Transamerica because the arbitrator lacked jurisdiction over Transamerica.
Rapid Settlements, Ltd v. Green (Tex.App.- Houston [1st Dist.] Jun. 18, 2009)(Op. By Alcala) (transfer of
structured settlement rights, grounds for vacature of arbitration award entered under the Federal Arbitration
Act (FAA), applicability of FAA, does the FAA preempt the TAA?, nonexistence of arbitration agreement
between the parties, when are nonsignatories bound to by arbitration agreement? nonparties to the
agreement, nonsignatories)(arbitrator exceeded his authority in issuing the award. See 9 U.S.C.S. § 10(a)(4).
AFFIRM TRIAL COURT JUDGMENT DENYING CONFIRMATION OF ARB AWARD:
Opinion by Justice Alcala
Before Justices Jennings, Alcala and Higley
01-08-00109-CV Rapid Settlements, Ltd. v. Jerry M. Green
Appeal from County Civil Court at Law No 3 of Harris County
Trial Court Judge: Hon. Linda Storey
"It goes without saying that a contract cannot bind a nonparty." EEOC v. Waffle House, Inc., 534 U.S.
279, 294, 122 S. Ct. 754, 764 (2002). "[A] duty to arbitrate can arise only by agreement." United Steel, Paper
& Forestry, Rubber, Mfg., Energy, Allied Indus. & Serv. Workers Int'l Union v. TriMas Corp., 531 F.3d 531,
535 (7th Cir. 2008) (citing United Steelworkers of Am. v. Warrior & Gulf, 363 U.S. 574, 582, 80 S. Ct. 1347,
1352 (1960)).
"[A] gateway dispute about whether the parties are bound by a given arbitration clause raises a
'question of arbitrability' for a court to decide." Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79, 84, 123
S. Ct. 588, 592 (2002); see also AT&T Techs., Inc. v. Communc'ns Workers of Am., 475 U.S. 643, 649, 106
S. Ct. 1415, 1418 (1986); TriMas Corp., 531 F.3d at 535; Will-Drill Res., Inc. v. Samson Res. Co., 352 F.3d
211, 219 (5th Cir. 2003) (holding that "where a party attacks the very existence of an agreement, as
opposed to its continued validity or enforcement, the courts must first resolve that dispute"). Under the FAA,
state law governs the question of whether a litigant has agreed to arbitrate. First Options of Chicago, Inc. v.
Kaplan, 514 U.S. 938, 944-45, 115 S. Ct. 1920, 1924 (1995); In re Weekley Homes, L.P., 180 S.W.3d 127,
130-31 (Tex. 2005).
It is undisputed that Transamerica did not agree to arbitrate with Rapid and Green. We must therefore
consider whether Transamerica might be bound as a nonsignatory.
AllStyle Coil Co, LP v. Correon (Tex.App.- Houston [1st Dist.] May 7, 2009)(Sharp)
(arbitration confirmation suit FAA, vacature denied, grounds to vacate)(worker wins in arbitration, award
confirmed)
AFFIRM TRIAL COURT JUDGMENT: Opinion by Justice Jim Sharp
Before Justices Taft, Bland and Sharp
01-07-00790-CV
AllStyle Coil Company, L.P. v. Roberto Carreon
Appeal from 133rd District Court of Harris County
Trial Court Judge: Hon. Lamar McCorkle
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