CMH HOMES v. Perez
340 S.W.3d 444
| Tex. | 2011Background
- CMH Homes and Perez agreed to arbitrate but could not agree on an arbitrator.
- Perez petitioned to compel arbitration; two months of back-and-forth led to an impasse.
- The trial court appointed Gilberto Hinojosa as arbitrator after hearing Perez’s motion.
- CMH Homes appealed under Texas Civil Practice and Remedies Code section 51.016, and asked that the appeal be treated as mandamus.
- The court of appeals dismissed the interlocutory appeal for lack of jurisdiction under § 51.016.
- This Court held § 51.016 does not authorize interlocutory appeals of arbitrator-appointment orders but allows mandamus relief; case remanded for mandamus proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 51.016 allows an interlocutory appeal of an arbitrator-appointment order | CMH Homes argues the appeal fits § 51.016 | Perez argues the order is not appealable under § 51.016 | No; § 51.016 does not authorize such interlocutory appeal. |
| Whether the appeal may be treated as a petition for writ of mandamus | CMH Homes requested mandamus treatment to obtain review | Perez argues mandamus is improper due to procedural issues | Yes; the appeal may be treated as mandamus, and the court should remand for mandamus review. |
| What remedy should apply given the outcome on § 51.016 and mandamus treatment | Seeking mandamus preserves arbitration rights | Mandamus would not prejudice final resolution | Court of Appeals to consider the mandamus petition consistent with this opinion. |
Key Cases Cited
- In re Gulf Exploration, LLC, 289 S.W.3d 836 (Tex. 2009) (arbitrability stays; stay vs. dismissal in state court context)
- Jack B. Anglin Co., Inc. v. Tipps, 842 S.W.2d 266 (Tex. 1992) (interlocutory appeals generally limited to statute; parallel proceedings discouraged)
- In re D. Wilson Constr. Co., 196 S.W.3d 774 (Tex. 2006) (call for amendment and efficiency in arbitration review)
- In re Louisiana Pacific Corp., 972 S.W.2d 63 (Tex. 1998) (mandamus review of arbitrator appointment under FAA when contract provides for selection rights)
- National American Ins. Co. v. Transamerica Occidental Life Ins. Co., 328 F.3d 462 (8th Cir. 2003) (federal authority on reviewing arbitration orders)
- ACEquip Ltd. v. American Engineering Corp., 315 F.3d 151 (2d Cir. 2003) (federal authority on reviewing arbitration orders)
- Universal Reinsurance Corp. v. Allstate Ins. Co., 16 F.3d 125 (7th Cir. 1994) (review of final arbitration decisions under FAA §16)