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From the monthly archives: August, 2016

We are pleased to present below all posts archived in 'August, 2016'. If you still can't find what you are looking for, try using the search box.

Texas: Arbitrator did not exceed authority by awarding damages not encompassed by arbitration agreement

In Patel v. Moin, the Fourteenth Court of Appeals affirmed the trial court's judgment confirming an arbitration award. The arbitrator did not exceed her authority by awarding damages that were not encompassed by the arbitration agreement. This arbitration started with an agreement that was part of the operating agreement for a health center. After a lawsuit was underway, the parties signed a one-page "Agreement for Binding Arbitration" that included other parties.  The arbitration commenced and the arbitrator did not award damages for lost profits (because those damages were "too speculative") but did award damages for breach of contract, including an award of attorney's fees. The arbitrator also awarded arbitration costs and attorney's fees to a party finding that certain claims were groundless and brought in bad faith. The arbitration agreement encompassed all claims and counterclaims then pending before the trial court. When the arbitrator awarded breach of contract damages, the movants for va ...

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Texas: Arbitrator did not exceed scope and "violation of public policy" is not a grounds for vacatur

In Infinity Capital II, LLC v. Strasburger & Price, LLP, the First District Court of Appeals held that the trial court properly confirmed an arbitration award, in spite of a motion to vacate that argued the underlying settlement agreement was not valid, the arbitrator exceeded his powers, and the final award violated public policy. The parties had agreed to a transfer of real properties to Strasburger. Strasburger alleged that the transfer did not take place and the properties were fraudulently transferred to another entity. The earlier settlement agreement contained an arbitration provision and named the arbitrator. The Court of Appeals affirmed the arbitration award, finding that (1) an attack on the entire settlement agreement was not a sufficiently specific objection on the arbitration agreement; (2) the arbitrator did not exceed his powers as all disputes were to be resolved by him; and (3) "violation of public policy" is not an authorized ground for vacatur under the Texas Civil Practice and Remed ...

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