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Black's Law Dictionary 1522 (6th ed.1990) (defining "Ultra vires" as, inter alia, "[a]n act performed without
authority to act on subject"). The Supreme Court has acknowledged that an arbitrator's ultra vires act need not
be recognized. See Marine Transit Corp. v. Dreyfus, 284 U.S. 263, 275-76, 52 S.Ct. 166, 76 L.Ed. 282 (1932)
("[w]e do not conceive it to be open to question that, where the court has authority under the statute ... to make
an order for arbitration, the court also has authority to confirm the award or to set it aside for irregularity, fraud,
ultra vires or other defect").

SCOPE OF ARBITRATION AGREEMENT

In reviewing the arbitrator's decision independently, we recognize the strong presumption under the Federal
Arbitration Act of favoring arbitration. See In re D. Wilson Constr. Co., 196 S.W.3d 774, 782-83 (Tex.2006).
Furthermore, we note that any doubt as to whether a party's claim falls within the scope of an arbitration
agreement must be resolved in favor of arbitration. Id. Also, a court should not deny arbitration unless it can be
said with positive assurance that an arbitration clause is not susceptible to an interpretation that would cover
the dispute at issue. Id.; see also In re Dillard Dept. Stores, Inc., 186 S.W.3d at 516. Of course, "the policy that
favors resolving doubts in favor of arbitration cannot serve to stretch a contractual clause beyond the scope
intended by the parties or authorize an arbiter to disregard or modify the plain and unambiguous provisions of
the agreement." Smith v. Transp. Workers Union of Am., AFL-CIO Air Transp. Local 556, 374 F.3d 372, 375
(5th Cir.2004) (citations omitted); see also Belmont Constructors, Inc. v. Lyondell Petrochemical Co., 896
S.W.2d 352, 356 (Tex.App.-Houston [1st Dist.] 1995, no writ) (stating that "federal policy of resolving doubts in
favor of arbitration" cannot stretch contractual clause beyond scope intended or allow modification of plain and
unambiguous provisions).
BURLINGTON RES. OIL v. SAN JUAN BASIN ROY., 249 SW 3d 34 - Tex: Court of Appeals, Houston 2007

We conclude the arbitrator exceeded his authority in issuing the award. See 9
U.S.C.S. § 10(a)(4). We hold the trial court did not err by vacating the arbitrator's award
because the arbitrator exceeded his powers in issuing an award against a party not
subject to arbitration. See id. § 10. Rapid Settlements, Ltd v. Green (Tex.App.- Houston [1st Dist.] Jun. 18,
2009)(Op. By Alcala) (transfer of structured settlement rights, grounds for v acature 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

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