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In Re Guardianship of Cantu De Villarreal
2010 Tex. App. LEXIS 9176
| Tex. App. | 2010
Read the full case

Background

  • Doña Raquel Cantu de Villarreal is an elderly ward with seven children disputing care and estate matters.
  • The seven siblings signed an Irrevocable Family Settlement Agreement that includes an arbitration clause designating Reynaldo Garza, Jr. as arbitrator for disputes about interpretation and implementation of the agreement.
  • The trial court approved the settlement and incorporated it into a February 14, 2008 judgment.
  • Raquel moved for accounting, contempt, injunctive relief, and defense against alleged withdrawals of funds, leading to a June 11, 2008 court order and a June 27, 2008 writs of attachment against some siblings.
  • On June 9, 2008, the court ordered arbitration; an arbitration hearing occurred August 18, 2008 with appellants not appearing in person (represented by counsel); the arbitrator issued an eighteen-page award on September 25, 2008.
  • The trial court confirmed the award, and appellants challenged vacatur; the appeal discussed law-of-the-case and various theories about void orders, illegality, and public policy in relation to the arbitration agreement and award.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Arbitrator exceeded powers or award obtained by undue means due to void orders Cantu: void guardianship orders taint arbitration Villarreal: law-of-the-case bars reconsideration; agreement governs arbitration Issue precluded by law of the case; overruled.
Arbitrator enforcement of legally prohibited provisions or public-policy violations Cantu: award enforces illegal/public-policy violations Villarreal: pre-Hall St. common-law grounds may apply; statutory grounds control Arbitrator did not exceed authority; public-policy illegality not shown; overruled.
Arbitration hearing conduct and postponement denial for sufficient cause Cantu: must postpone for pending appeal and potential arrest Villarreal: no right to continuance; affidavits available Arbitrator acted within discretion; denial of postponement affirmed.
Scope of arbitrator authority under settlement to divide assets involving Doña Raquel and San Pedro Impulsora Cantu: assets not owned by ward/third party; no justiciable interest Villarreal: agreement authorizes disposition of related assets Arbitrator authorized to decide matters arising from the agreement; no reversal on this basis.

Key Cases Cited

  • CVN Group, Inc. v. Delgado, 95 S.W.3d 234 (Tex. 2002) (arbitration awards have limited grounds for vacatur; default confirmation favored)
  • Hall St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576 (S. Ct. 2008) (statutory grounds for vacatur preempt common-law grounds in FAA context)
  • Centex/Vestal v. Friendship W. Baptist Church, 314 S.W.3d 677 (Tex.App.-Dallas 2010) (limits of arbitrator's authority; deference to arbitration preserved)
  • In re Chestnut Energy Partners, Inc., 300 S.W.3d 386 (Tex.App.-Dallas 2009) (de novo review of vacatur/confirmation; standards of record evidence)
  • Statewide Remodeling, Inc. v. Williams, 244 S.W.3d 564 (Tex.App.-Dallas 2008) (narrow review of arbitration awards; presumptions in favor of award)
Read the full case

Case Details

Case Name: In Re Guardianship of Cantu De Villarreal
Court Name: Court of Appeals of Texas
Date Published: Nov 18, 2010
Citation: 2010 Tex. App. LEXIS 9176
Docket Number: 13-08-00708-CV
Court Abbreviation: Tex. App.