History
  • No items yet
midpage
Adams v. STAXXRING, INC.
344 S.W.3d 641
| Tex. App. | 2011
Read the full case

Background

  • Langford and Adams are 50/50 owners of StaxxRing, a closely held jewelry company.
  • The dispute centers on control of StaxxRing, described as a corporate power struggle.
  • StaxxRing bylaws include Article II, §13, requiring arbitration in Dallas, Texas for shareholder disputes.
  • Adams initiated extensive litigation including discovery, injunctive relief, and third-party claims against Langford, StaxxRing, and others.
  • After months of litigation and discovery, Adams sought to compel arbitration via the bylaws provision.
  • The trial court denied arbitration, and Adams appealed alleging waiver of arbitration rights.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Adams waived his arbitration rights. Adams argues the claims fall within the arbitration clause. Langford and StaxxRing contend Adams substantially invoked the judicial process causing waiver. Adams waived arbitration rights due to substantial invocation of the judicial process.

Key Cases Cited

  • Perry Homes v. Cull, 258 S.W.3d 580 (Tex. 2008) (waiver shown by extensive discovery and late arbitration request; strong presumption against waiver)
  • Bruce Terminix Co., 988 S.W.2d 702 (Tex. 1998) (waiver when arbitration rights are invoked in ways inconsistent with a decisive arbitration request)
  • Oakwood Mobile Homes, 987 S.W.2d 571 (Tex. 1999) (strong presumption against waiving arbitration rights; resolves questions of waiver de novo)
  • In re Christus Spohn Health Sys. Corp., 231 S.W.3d 475 (Tex.App.—Corpus Christi 2007) (examines factors for waiver including timing and discovery related to merits)
  • Okorafor v. Uncle Sam & Assocs., Inc., 295 S.W.3d 27 (Tex.App.—Houston [1st Dist.] 2009) (conduct addressing merits and discovery can support waiver)
  • Holmes v. Woods & Diggs v. Gentry, 333 S.W.3d 650 (Tex.App.—Dallas 2009) (discusses waiver standards in arbitration context)
Read the full case

Case Details

Case Name: Adams v. STAXXRING, INC.
Court Name: Court of Appeals of Texas
Date Published: Aug 11, 2011
Citation: 344 S.W.3d 641
Docket Number: 05-10-01142-CV
Court Abbreviation: Tex. App.