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

Originally published by Gene Roberts.

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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