387 S.W.3d 799
Tex. App.2012Background
- Beatty-Ortiz was employed by IHS Acquisition No. 171 d/b/a Mesa Hills Specialty Hospital from 2000 until her termination on February 3, 2010.
- Beatty filed a Texas Workforce Commission complaint on March 31, 2010 alleging ongoing gender discrimination by her employer.
- Beatty filed suit against Appellants in October 2010 alleging the same discrimination claims.
- Appellants moved to compel arbitration, attaching a September 23, 2008 Mutual Arbitration Agreement.
- The Agreement appears to name IHS Acquisition No. 174 as Employer, but Beatty was employed by IHS Acquisition No. 171, creating a misnomer argument.
- The trial court denied arbitration, and Appellants appealed the denial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Gateway issues to arbitration or court. | Beatty contends a court should decide arbitrability (formation/validity). | Appellants contend the agreement delegates gateway issues to the arbitrator. | Court held gateway issues to arbitration per delegation provision. |
| Effect of misnomer on enforceability. | Beatty argues misnomer defeats enforceability of the arbitration agreement. | Appellants argue misnomer does not defeat, since conduct shows mutual assent. | Misnomer does not void the arbitration agreement; arbitration proceeds. |
Key Cases Cited
- Rent-A-Center West, Inc. v. Jackson, 561 U.S. 63 (2010) (delegation and gateway issue framework under FAA)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995) (questions of arbitrability depend on what parties agreed)
- AT&T Technologies, Inc. v. Communications Workers, 475 U.S. 643 (1986) (parties may delegate arbitrability to arbitrator)
- J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (contract formation and arbitration enforcement)
- In re Palm Harbor Homes, Inc., 195 S.W.3d 672 (Tex. 2006) (formation of arbitration contracts under Texas law)
- In re AdvancePCS Health L.P., 172 S.W.3d 603 (Tex. 2005) (mutual promises as consideration for arbitration)
- In re Halliburton Co., 80 S.W.3d 569-70 (Tex. 2002) (mutual promises to arbitrate; consideration)
- Fogal v. Stature Construction, Inc., 294 S.W.3d 708 (Tex.App.—Houston [1st Dist.] 2009) (misnomer may not defeat enforceability of arbitration)
- In re 24R, Inc., 324 S.W.3d 564 (Tex. 2010) (illusory promises; mutuality and consideration)
