Athas Health, LLC D/B/A North American Spine v. Melody Trevithick, Individually and as Personal Representative of the Estate of Paul Trevithick, and Damon Trevithick and Sedric Trevithick, Individually
05-16-00219-CV
| Tex. App. | Feb 17, 2017Background
- Paul Trevithick (Minnesota resident) consulted Athas Health (d/b/a North American Spine) online for MRI review and treatment; underwent two spinal surgeries by Dr. Kelly Will; complications from the second surgery led to infection and death.
- Appellees (Trevithick’s estate and family) sued Athas and Dr. Will for health‑care liability claims, alleging negligent MRI review, improper referrals, and surgical errors; Athas answered and contested arbitration.
- Athas filed two motions to compel arbitration: first based on a website "user agreement" checkbox, second based on an electronic financial agreement containing a broad arbitration clause naming Athas and specifying AAA/Dallas and FAA applicability.
- Trial court denied both motions; Athas appealed interlocutorily and consolidated appeals. The court reviewed enforceability, scope of the arbitration clause, and alleged waiver by Athas.
- The Court of Appeals concluded Athas could enforce the financial‑agreement arbitration clause (as party or third‑party beneficiary), the claims fell within its broad scope, and Athas had not waived arbitration.
- Court reversed denial of the second motion, rendered judgment compelling arbitration of all claims and defenses, and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the financial agreement created an enforceable arbitration agreement between Trevithick and Athas | Agreement named Red River Spine/Dr. Will at top; Trevithick didn’t contract with Athas | Athas sent, received, and was identified in the arbitration clause; Athas is a party or third‑party beneficiary | Athas may enforce the arbitration clause (party or third‑party beneficiary) |
| Whether appellees’ claims fall within the arbitration clause’s scope | Billing language limits Athas’s role to administrative/billing services, so health‑care claims are excluded | Clause is broad and expressly covers any cause of action arising from services Athas provided relating to medical treatment | Claims fall squarely within the broad arbitration clause |
| Whether Athas waived its right to arbitrate by litigating in court | Appellees contend Athas invoked judicial process and allowed discovery, causing prejudice | Athas moved to compel arbitration early, challenged expert report timely, sought stays, and did not take dispositive litigation positions | No waiver; Athas did not substantially invoke judicial process to its detriment |
| Whether trial court’s denial was reversible | Trial court refused to compel arbitration despite clause and lack of waiver | Athas sought reversal and arbitration enforcement | Court reversed and rendered judgment compelling arbitration; remanded for further proceedings |
Key Cases Cited
- In re Labatt Food Serv., L.P., 279 S.W.3d 640 (Tex. 2009) (standards for appellate review of arbitration denial)
- In re Rubiola, 334 S.W.3d 220 (Tex. 2011) (party seeking arbitration must show valid clause and scope; state contract law governs validity)
- In re Palm Harbor Homes, 195 S.W.3d 672 (Tex. 2006) (electronic signature and non‑assertion of fraud in signing)
- Italian Cowboy Partners, Ltd. v. Prudential Ins. Co. of Am., 341 S.W.3d 323 (Tex. 2011) (determining third‑party beneficiary intent by contract language)
- Sherer v. Green Tree Servicing LLC, 548 F.3d 379 (5th Cir. 2008) (non‑signatory may enforce arbitration if agreement benefits them)
- Venture Cotton Co‑op. v. Freeman, 435 S.W.3d 222 (Tex. 2014) (burden shift to nonmovant to prove affirmative defenses to arbitration)
- G.T. Leach Builders, LLC v. Sapphire V.P., LP, 458 S.W.3d 502 (Tex. 2015) (waiver of arbitration is a question of law when facts undisputed)
- RSL Funding, LLC v. Pippins, 499 S.W.3d 423 (Tex. 2016) (party asserting waiver bears heavy burden; factors for waiver analysis)
- Prudential Secs. Inc. v. Marshall, 909 S.W.2d 896 (Tex. 1995) (presumption against waiver of arbitration rights)
- Ascendant Anesthesia PLLC v. Abazi, 348 S.W.3d 454 (Tex. App.—Dallas 2011) (broad arbitration clauses are construed to favor arbitration)
