Creative Artists Agency, LLC, Twisted Roads Touring, LLC, 4FINI, Inc., Brett Saliba, Sarah Siquieros F/K/A Sarah Baer, and Kevin Lyman v. Las Palmas Race Park, LLC Las Palmas Downs, Inc. and Front Porch Entertainment
13-14-00015-CV
| Tex. App. | Oct 29, 2015Background
- Creative Artists contracted with Promotions of America for Willie Nelson festival at Las Palmas Race Park; Ramirez signed the contract, Las Palmas did not sign.
- Arbitration clause requires Los Angeles arbitration under AAA rules; force majeure and damages exclusions limit recoveries.
- Las Palmas paid an $80,000 deposit and later an additional $80,000; concert allegedly plagued by staging issues and weather-related problems.
- Show canceled; Las Palmas allegedly paid to induce rescheduling, which appellants later refused to honor.
- Las Palmas filed suit (theft/conversion, fraud, conspiracy, unjust enrichment); Creative Artists moved to compel arbitration, trial court denied.
- Appeal: court reviews under abuse of discretion for factual findings, de novo for law; issue whether non-signatory Las Palmas is bound by arbitration.
- Court concludes no valid arbitration agreement existed as to Las Palmas under theories of assumption or equitable estoppel; affirms trial court’s denial and thus denies arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of valid arbitration for non-signatory | Las Palmas assumed the Agreement, or is bound by it via equitable estoppel. | Las Palmas did not sign; no express/implied assumption; no equitable estoppel binding. | No valid arbitration agreement; non-signatory not bound. |
| Support for implied findings | Trial court’s implied facts support arbitration arguments. | Evidence insufficient to support implied findings of assumption or related facts. | Implied findings supported; no arbitration obligation. |
| Abatement during arbitration | Proceedings should abate pending arbitration. | Do not abate; arbitration not required. | Issue deemed non-dispositive; appeal affirms denial without abatement. |
Key Cases Cited
- In re Kellogg Brown & Root, Inc., 166 S.W.3d 732 (Tex. 2005) (establishes six theories binding non-signatories to arbitration)
- Mohamed v. Auto Nation USA Corp., 89 S.W.3d 830 (Tex. App.—Houston [1st Dist.] 2002) (burden to show arbitration exists; non-signatory context)
- J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (traditional contract principles govern arbitration interpretation)
- G.T. Leach Builders, LLC v. Sapphire V.P., LP, 458 S.W.3d 502 (Tex. 2015) (direct-benefit equitable estoppel depends on contract reliance)
- In re Hartigan, 107 S.W.3d 684 (Tex. App.—San Antonio 2003) (equitable estoppel to compel arbitration when claims rely on contract)
- In re Palm Harbor Homes, Inc., 195 S.W.3d 678 (Tex. 2006) (non-signatory binding where contract terms are central)
- NextEra Retail of Tex., LP v. Investors Warranty of Am., Inc., 418 S.W.3d 222 (Tex. App.—Houston [1st Dist.] 2013) (implied assumption and assignment principles for contract obligations)