590 S.W.3d 518
Tex.2019Background
- Nathan and Misti Robinson purchased a new home covered by a limited warranty and addendum that required FAA-governed arbitration of “Unresolved Warranty Issues,” but neither document mentioned delegation of arbitrability or class arbitration.
- The Robinsons sued for construction defects; the trial court compelled arbitration of their individual warranty claims under the contracts.
- Shortly before arbitration, the Robinsons added putative class claims alleging HOME routinely demanded overbroad releases; the arbitrator denied HOME’s motion to strike and bifurcated the class claims.
- After the arbitrator awarded the Robinsons on individual claims, the Robinsons sought to compel arbitration of the class claims; HOME asked the trial court to rule that class arbitrability is for the court and that the contracts do not authorize class arbitration.
- The trial court and the court of appeals held that class-arbitrability is a gateway question for courts absent a clear and unmistakable delegation to an arbitrator, and that the warranty agreements—silent on class arbitration—did not authorize classwide arbitration; the Texas Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Who decides whether the parties agreed to class arbitration | Broad arbitration clause delegates arbitrability to the arbitrator | Class arbitrability is a gateway question for courts unless there is clear and unmistakable delegation | Court: availability of class arbitration is a gateway question for the court absent clear and unmistakable delegation to an arbitrator |
| Whether the contracts authorize class arbitration | The arbitration provisions broadly cover "Unresolved Warranty Issues," which include the class claims | The agreements are silent on class arbitration; silence/ambiguity cannot be read to authorize class arbitration | Held: silence or ambiguity is insufficient; an express contractual basis is required for class arbitration |
| Whether defendant consented or acquiesced to class arbitration by its conduct | HOME’s prior motion to compel individual arbitration and participation before the arbitrator show assent | HOME consistently objected to class arbitration and sought judicial determination; its conduct does not show clear assent | Held: HOME did not consent or acquiesce; its conduct did not manifest clear intent to submit class arbitrability to the arbitrator |
Key Cases Cited
- Lamps Plus, Inc. v. Varela, 139 S. Ct. 1407 (2019) (holds silence or ambiguity cannot supply a contractual basis for class arbitration)
- Stolt‑Nielsen S.A. v. AnimalFeeds Int’l Corp., 559 U.S. 662 (2010) (explains class arbitration is fundamentally different and consent cannot be presumed)
- Green Tree Fin. Corp. v. Bazzle, 539 U.S. 444 (2003) (plurality; discussed but later clarified as not settling the “who decides” issue)
- Henry Schein, Inc. v. Archer & White Sales, Inc., 139 S. Ct. 524 (2019) (courts must enforce clear delegations of arbitrability to arbitrators)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995) (clarifies courts generally decide arbitrability absent clear and unmistakable evidence to the contrary)
- In re Wood, 140 S.W.3d 367 (Tex. 2004) (prior Texas decision treating class‑arbitrability as for arbitrator; overruled on this point)
- Jody James Farms, JV v. Altman Grp., Inc., 547 S.W.3d 624 (Tex. 2018) (Texas precedent holding silence does not establish clear delegation of arbitrability)
