in Re Key Equipment Finance Inc.
371 S.W.3d 296
| Tex. App. | 2012Background
- This is an original proceeding for mandamus challenging a trial court order denying a motion to strike a jury demand.
- Key and ABM sought to enforce a contractual jury-waiver clause in a 2007 lease and a related service contract.
- The lease and service contract contain jury waiver and arbitration provisions, respectively.
- Austin attempted to terminate the lease after two years and invoked arbitration via the lease; Austin also filed suit asserting breach of contract and fraud.
- Key and ABM moved to strike Austin’s jury demand; the trial court denied the motion.
- A subsequent judge reaffirmed the denial, prompting mandamus review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of the contractual jury waiver | Waiver is valid; Austin knowingly accepted; course of dealing shows understanding | Waiver not conspicuous; Austin may not have knowingly accepted | Waiver enforced; trial court erred |
| Effect of laches on mandamus relief | Delay did not prejudice Key/ABM; reasonable explanations exist | Delay should bar relief under laches | Laches did not bar mandamus; relief granted conditional on trial court action |
Key Cases Cited
- Prudential Ins. Co. of Am. v. Prudential, 148 S.W.3d 124 (Tex. 2004) (trustworthiness of contract interpretation for waivers; no presumption against jury waivers)
- Bank of Am., N.A. v. S. Texas Blood & Tissue Ctr., 278 S.W.3d 336, 278 S.W.3d 344 (Tex. 2010) (no automatic presumption against jury waivers; conspicuousness matters)
- Rivercenter Assocs. v. Rivera, 858 S.W.2d 366 (Tex. 1993) (equitable defense of laches in mandamus regarding jury demand)
- In re Gen. Elec. Capital Corp., 203 S.W.3d 314 (Tex. 2006) (conspicuous waiver not required for enforceability; burden on proponent to show knowing/voluntary waiver)
- AutoNation USA Corp. v. Leroy, 105 S.W.3d 190 (Tex. App.—Houston [14th Dist.] 2003) (delay in seeking arbitration did not prejudice opponent; waiver enforceability)
- Dresser Indus. v. Page Petroleum, Inc., 853 S.W.2d 505 (Tex. 1993) (fair notice considerations in certain waivers; express negligence doctrine analogs)
- Cate v. Dover Corp., 790 S.W.2d 559 (Tex. 1990) (fair notice and conspicuousness concepts in contract waivers)