law-TAA-of-FAA ? | preemption of Texas Arbitration Act by Federal Arbitration Act | applicability of the FAA |
Federal vs. State Arbitration Statute: FAA or TAA?
Chambers v. O'Quinn (Tex.App.- Houston [14th Dist.] Oct. 1, 2009)(Opinion on remand by Taft)
(right to arbitration of attorney-client / legal malpractice dispute not waived, conflict in arb agreement as to
whether TAA or FAA applies resolved in favor of Texas Arbitration Act, arbitration of legal malpractice claims)
AFFIRM TRIAL COURT JUDGMENT: Opinion by Justice Tim Taft
Before Justices Taft, Keyes and Hanks
01-04-01029-CV Bob Chambers, et al. v. John M. O'Quinn, individually d/b/a O'Quinn & Laminack, and John M.
Appeal from 61st District Court of Harris County
Trial Court Judge: Hon. John Donovan
In this case, the arbitration agreement does not expressly state whether the FAA or TAA applies.
However, the record establishes that the proposed transaction between Green and Rapid Settlements involved
interstate commerce: Green is a Florida resident who contracted with Rapid Settlements, a Texas
corporation. See In re People's Choice Home Loan, Inc., 225 S.W.3d 35, 40-41 (Tex. App.--El Paso 2005, no
pet.). We hold the FAA applies because the contract involves interstate commerce.
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 TC 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
Because the parties disagree, we must address whether the Federal Arbitration Act (FAA) or the Texas
Arbitration Act (TAA) applies to this arbitration agreement. See 9 U.S.C.S. §§ 1-307 (LexisNexis 2008); Tex. Civ.
Prac. & Rem. Code Ann. § 171.001-.098 (Vernon 2005).
The FAA applies to all suits in state or federal court when the dispute concerns a "contract evidencing a
transaction involving commerce." Jack B. Anglin Co., Inc. v. Tipps, 842 S.W.2d 266, 269-70 (Tex. 1992) (orig.
proceeding). When there is no express agreement to arbitrate under the FAA, a party may establish the
applicability of the FAA by showing that the transaction affects or involves interstate commerce. See Stewart
Title Guar. Co. v. Mack, 945 S.W.2d 330, 333 (Tex. App.--Houston [1st Dist.] 1997, writ dism'd w.o.j.). Under the
FAA, "interstate commerce" is not limited to the interstate shipment of goods, but includes all contracts "relating
to" interstate commerce. In re FirstMerit Bank, 52 S.W.3d 749, 754 (Tex. 2001) (orig. proceeding). Interstate
commerce may be shown in several ways, including: (1) location of headquarters in another state; (2)
transportation of materials across state lines; (3) manufacture of parts in a different state; (4) billings prepared
out of state; and (5) interstate mail and phone calls in support of a contract. See Tipps, 842 S.W.2d at 270;
Mack, 945 S.W.2d at 333.
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