Casa Del Mar Association, Inc. v. Williams & Thomas, L.P. D/B/A Jamail Construction
476 S.W.3d 96
Tex. App.2015Background
- Casa del Mar Association contracted Jamail Construction for improvements at a condo complex; disputes arose over alleged defects.
- Casa del Mar initiated arbitration seeking damages for breach of contract, breach of express warranty, implied warranty of good and workmanlike conduct, negligence, and negligent misrepresentation.
- Arbitration panel issued a reasoned award denying most damages and awarding $24,490.20, with 30% of the broader damage estimate allocated to Jamail and 70% to Casa del Mar; tort claims were denied under the economic loss rule.
- Casa del Mar moved to correct the award and then sought to vacate in Texas courts; the panel denied the motion to correct.
- The district court denied the motion to vacate and granted the motion to confirm; the appellate court (14th Court) affirmed, holding manifest disregard of the law is not a ground for vacatur and gross-mistake grounds were not proven.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the award can be vacated for gross mistake or manifest disregard | Casa del Mar argues gross mistake and manifest disregard apply | Jamail contends these grounds do not exist under Texas or Federal law | No vacatur on either ground; manifest disregard not a Texas/Federal basis and gross-mistake burden unmet |
| Whether exhibits attached to the motion to vacate require remand or abatement for proper consideration | Exhibits were missing from the trial court file but should be considered | Exhibits not essential to vacatur decision and record supports denial | No remand or abatement required; record supports denial of vacatur |
Key Cases Cited
- CVN Group, Inc. v. Delgado, 95 S.W.3d 234 (Tex. 2002) (arbitration award vacatur standards under Texas law; public policy limits)
- Action Box Co. v. Panel Prints, Inc., 130 S.W.3d 249 (Tex. App.—Hou. [14th Dist.] 2004) (public policy and standards for vacating under Texas Act)
- Kline v. O’Quinn, 874 S.W.2d 776 (Tex. App.—Hou. [14th Dist.] 1994) (arbitration award review in Texas; limits on vacatur grounds)
- Callahan & Assocs. v. Orangefield Indep. Sch. Dist., 92 S.W.3d 841 (Tex. 2002) (burden on movant to show gross mistake and bad faith)
- Black v. Shor, 443 S.W.3d 154 (Tex. App.—Corpus Christi 2013) (insufficient showing of gross mistake to vacate)
- Carpenter v. North River Ins. Co., 436 S.W.2d 549 (Tex. Civ. App.—Hou. [14th Dist.] 1968) (burden to show gross mistake includes bad faith/honest judgment)
- Hall Street Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576 (S. Ct. 2008) (federal grounds for vacatur are exclusive)
- Ewing v. ACT Catastrophe-Texas, L.C., 375 S.W.3d 545 (Tex. App.—Houston [14th Dist.] 2012) (manifest disregard not a Texas Act ground for vacatur)
- Leslie v. Hill, 2014 WL 5309660 (Tex. App.—Hou. [14th Dist.] 2014) (no published opinion; vacatur standards)
- Action Box Co. v. Panel Prints, Inc., 130 S.W.3d 249 (Tex. App.—Hou. [14th Dist.] 2004) (reiterated above; vacatur standards)
