Big Bass Towing, Co. v. Stephen Akin
409 S.W.3d 835
| Tex. App. | 2013Background
- Stephen Akin, a tow-truck driver for Big Bass Towing, suffered serious workplace injuries and sued Big Bass for negligence and vicarious liability.
- Big Bass is a non-subscriber to Texas workers’ compensation but maintained an "Occupational Injury Employee Benefit Plan" that Akin received benefits under.
- Big Bass moved to compel arbitration, asserting an "Occupational Injury Employee Benefit Plan and Mutual Agreement to Arbitrate" and arguing Akin had notice of and ratified the arbitration agreement by accepting benefits.
- Akin denied he had notice of any arbitration agreement, never signed one, and said he only learned of the arbitration agreement months after filing suit.
- The trial court denied Big Bass’s motion to compel arbitration; Big Bass appealed under section 51.016.
Issues
| Issue | Plaintiff's Argument (Akin) | Defendant's Argument (Big Bass) | Held |
|---|---|---|---|
| Are the occupational-benefit plan and the arbitration agreement a single integrated "Occupational Injury Employee Benefit Plan and Mutual Agreement to Arbitrate"? | They are separate; Akin contends the plan and arbitration agreement are distinct documents. | They are one integrated document or at least related and collectively provided notice. | They are separate documents; plan did not give notice of arbitration. |
| Did Akin have notice of the arbitration agreement such that he accepted its terms? | He had no notice, never received or signed the arbitration agreement, and first learned of it months after suit. | Akin received other documents and was told of the plan; Binder affidavit and signed rules show notice. | Trial court didn’t abuse discretion: evidence did not establish Akin had notice. |
| Did Akin ratify the arbitration agreement by accepting benefits under the plan? | No — ratification requires knowledge of the agreement when accepting benefits. | Acceptance of medical/indemnity benefits under the plan constituted ratification. | No ratification: no evidence Akin knew of arbitration when he accepted benefits. |
Key Cases Cited
- In re Labatt Food Serv., L.P., 279 S.W.3d 640 (Tex. 2009) (standards for reviewing arbitration denials and separable legal/factual review)
- In re Dallas Peterbilt, Ltd., L.L.P., 196 S.W.3d 161 (Tex. 2006) (employer must show employee received notice of arbitration policy and accepted it)
- Weekley Homes, L.P. v. Rao, 336 S.W.3d 413 (Tex. App.—Dallas 2011) (party seeking arbitration must show agreement exists and claims fall within its scope)
- J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (presumption favoring arbitration arises only after a valid arbitration agreement is shown)
- In re Merrill Lynch Trust Co. FSB, 235 S.W.3d 185 (Tex. 2007) (FAA does not compel arbitration absent agreement)
- Barrand, Inc. v. Whataburger, Inc., 214 S.W.3d 122 (Tex. App.—Corpus Christi 2006) (definition and requirements for ratification of a contract)