577 S.W.3d 263
Tex. App.2018Background
- Denise Longoria signed a written arbitration agreement with CKR Property before her first employment period (June 2015) covering “any claim or dispute between them … whether related to the employment relationship or otherwise.”
- Longoria resigned in June 2016 and was rehired by CKR in April 2017; she did not sign a new arbitration agreement at rehire but did sign a confidentiality/non‑compete agreement.
- CKR terminated Longoria about six months after rehiring and sued her in October 2017 for breach of the non‑compete tied to the second employment period.
- Longoria moved to compel arbitration under the earlier arbitration agreement; the trial court denied the motion and Longoria appealed.
- The court of appeals reviewed whether (1) a valid arbitration agreement existed, (2) the dispute fell within its scope, and (3) Longoria waived the right to arbitrate.
Issues
| Issue | Plaintiff's Argument (Longoria) | Defendant's Argument (CKR) | Held |
|---|---|---|---|
| Validity of arbitration agreement | Agreement is valid and binding; mutual assent and consideration exist | Agreement was only signed in 2015 but CKR does not dispute its validity | Court: Agreement valid; unambiguous, mutual assent and consideration present; employer signature not required |
| Scope — whether agreement covers claims arising from second employment period | Broad, unbounded language covers “any claim or dispute between them” including post‑rehire claims | Agreement expired with first employment; post‑expiration claims must arise under the expired agreement (relying on collective‑bargaining precedents) | Court: Scope is broad and presumptively covers the claims; no temporal limit so claims from second period fall within agreement |
| Applicability of cases about expired agreements (e.g., Litton) | N/A | Litton and similar cases about collective bargaining show expired agreement may not cover post‑expiration disputes | Court: Litton and related cases are distinguishable (collective bargaining context); freestanding arbitration clause here is broader and governs |
| Waiver of arbitration right | Longoria did not waive; she moved to compel arbitration early and did not substantially invoke the judicial process | CKR asserts express and implied waiver by Longoria | Court: No express waiver evidence; no implied waiver—Longoria filed motion before significant litigation activity; no prejudice shown |
Key Cases Cited
- Branch Law Firm L.L.P. v. Osborn, 532 S.W.3d 1 (Tex. App. 2017) (abuse‑of‑discretion standard and presumption favoring arbitration)
- In re Rubiola, 334 S.W.3d 220 (Tex. 2011) (two‑part FAA test: valid agreement and scope)
- In re Weekley Homes, L.P., 180 S.W.3d 127 (Tex. 2005) (court decides gateway validity issues absent unmistakable evidence to delegate)
- In re 24R, Inc., 324 S.W.3d 564 (Tex. 2010) (mutual agreement to arbitrate supplies consideration)
- In re Dillard Dept. Stores, Inc., 186 S.W.3d 514 (Tex. 2006) (interpretation of unambiguous arbitration clauses by objective intent)
- In re D. Wilson Constr. Co., 196 S.W.3d 774 (Tex. 2006) (resolve doubts about scope in favor of arbitration)
- Litton Fin. Printing Div. v. N.L.R.B., 501 U.S. 190 (U.S. 1991) (expired collective bargaining agreement arbitrability limited to disputes arising under the expired CBA)
