Wednesday, May 20, 2015

Texas: Trial Court Committed No Error Confirming Arbitration Award When Party Did Not Appear

Originally published by Gene Roberts.

In KNJ Enterprises, Inc. v. Wilbanks & Wilbanks, PC, the Fourteenth Court of Appeals held that a trial court did not err when it confirmed an arbitration award when one of the parties did not appear at the arbitration.
Wilbanks initiated an arbitration proceeding against KNJ. According to the opinion, despite receiving notice of the proceeding, KNJ did not appear. KNJ initiated its own arbitration proceeding against Wilbanks, which was enjoined from proceeding by the trial court because of Wilbanks’ pending arbitration. Ultimately, the trial court entered an award in favor of Wilbanks. KNJ appealed, arguing that the trial court erred because KNJ’s claims could not have been heard when KNJ did not appear at the arbitration.
The Court of Appeals rejected KNJ’s argument, holding that the arbitrator determined KNJ received proper notice of the arbitration and that KNJ could not prevent the consideration of its claims be opting not to participate in an arbitration proceeding of which it had notice.
H/T to R …

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



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