Texas: Trial court affirmed–arbitrator did not exceed scope and “violation of public policy” is not a grounds for vacatur

Originally published by Gene Roberts.

In Infinity Capital II, LLC v. Strasburger & Price, LLP, the First District Court of Appeals held that the trial court properly confirmed an arbitration award, in spite of a motion to vacate that argued the underlying settlement agreement was not valid, the arbitrator exceeded his powers, and the final award violated public policy.
The parties had agreed to a transfer of real properties to Strasburger. Strasburger alleged that the transfer did not take place and the properties were fraudulently transferred to another entity. The earlier settlement agreement contained an arbitration provision and named the arbitrator.
The Court of Appeals affirmed the arbitration award, finding that (1) an attack on the entire settlement agreement was not a sufficiently specific objection on the arbitration agreement; (2) the arbitrator did not exceed his powers as all disputes were to be resolved by him; and (3) “violation of public policy” is not an authorized ground for vacatur under the Texas Civil Practice and Remed …

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

from Texas Bar Today http://ift.tt/2bSyocr
via Abogado Aly Website