Wednesday, March 11, 2015

Texas: Arbitration Clause Survives Termination or Repudiation of Contract

Originally published by Gene Roberts.


The Fort Worth Court of Appeals, in BBVA Compass Investment Solutions, Inc. v. Brooks, held that an agreement to arbitrate contained within a contract survives the termination or repudiation of the contract as a whole. The arbitration agreement within a written contract is separable from the entire contract. After finding that the arbitration provision survived, the Court then examined the scope of the arbitration provision, focusing on the factual allegations in the complaint, rather than the legal causes of action asserted. Determining the scope of the arbitration agreement is a question of law for the court. Here, the arbitration provision applied to “all controversies” with the Court analyzing the use of the conjunctive “or” in the arbitration agreement.

H/T to Ronnie Hornberger for informing us of this opinion.


Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.






from Texas Bar Today http://ift.tt/1EBBnjt

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