In Re Rubiola
334 S.W.3d 220
| Tex. | 2011Background
- Salmons contracted for home purchase financed via Rubiola Mortgage Company; J.C. Rubiola acted as mortgage broker and listing agent.
- Salmons signed an arbitration agreement during financing that defined parties broadly to include signatories and others involved in the transaction.
- The sale closed; Salmons later sued Rubiolas and related entities for misrepresentation and repair issues, seeking rescission or damages.
- Rubiolas moved to compel arbitration under the financing arbitration agreement, which Salmons opposed; trial court denied.
- The arbitration clause expressly included non-signatories as parties and covered all disputes involving the parties and past, present, or future agreements; question case addresses is whether non-signatories can compel arbitration and whether the Salmons’ claims fall within the scope.
- The issue was whether the Salmons’ claims could be compelled to arbitration by non-signatories under the agreement and whether the agreement’s scope includes these claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can non-signatories compel arbitration under the agreement? | Salmons argue Rubiolas cannot compel arbitration. | Rubiolas contend the broad party definition includes non-signatories who may compel arbitration. | Yes; non-signatories may compel arbitration where the agreement expressly contemplates them. |
| Do the Salmons' claims fall within the arbitration clause's scope? | Claims relate to the real estate contract and not the financing. | Clause covers all controversies among the parties and past/future agreements, including the real estate aspects intertwined with financing. | Yes; the scope extends to the Salmons' claims. |
Key Cases Cited
- In re Kellogg Brown & Root, Inc., 166 S.W.3d 732 (Tex. 2005) (valid arbitration inquiry guided by state contract law)
- In re Weekley Homes, L.P., 180 S.W.3d 127 (Tex. 2005) (gateway issue for non-signatory arbitration authority)
- Sherer v. Green Tree Servicing LLC, 548 F.3d 379 (5th Cir. 2008) (non-signatory enforcement not needed where terms identify parties)
- Bridas S.A.P.I.C. v. Gov't of Turkmenistan, 345 F.3d 347 (5th Cir. 2003) (ordinary contract and agency law bind non-signatories when terms clear)
- Cantella & Co., Inc. v. Goodwin, 924 S.W.2d 943 (Tex. 1996) (strong presumption in favor of arbitration under FAA)
- Prudential Sec. Inc. v. Marshall, 909 S.W.2d 896 (Tex. 1995) (any doubts about scope resolved in favor of arbitration)
- In re Halliburton Co., 80 S.W.3d 566 (Tex. 2002) (FAA governs interstate arbitration agreements)
