Pilot Travel Centers, LLC v. Joan McCray
416 S.W.3d 168
| Tex. App. | 2013Background
- Pilot Travel Centers, LLC sought to compel arbitration under FAA when faced with Texas wrongful‑death claims arising from Tony McCray’s death.
- Tony McCray signed an acknowledgment of Pilot Travel’s Mandatory Arbitration Plan, which requires arbitration for work‑related injuries and allows FAA to govern arbitration.
- The arbitration agreement covers claims arising from work‑related injuries and provides that arbitration is exclusive for such claims.
- Tony died in January 2011; his next of kin and Brandon Gullatte asserted wrongful death claims against Pilot Travel in Dallas County.
- Pilot Travel filed a motion to compel arbitration and stay the underlying lawsuit; the trial court denied the motion in late 2012, prompting this interlocutory appeal.
- The court ultimately held that the arbitration agreement existed, bound the parties to arbitration, and the claims fell within its scope, and reversed and remanded for arbitration and stay.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence and scope of arbitration agreement | Pilot Travel: valid agreement existed and bound Tony | McCrays: signature/authentication issues rebut the agreement | Arbitration agreement exists and covers the claims |
| Waiver of arbitration | Appellees claim waiver by Pilot Travel’s litigation conduct | Pilot Travel did not substantially invoke the judicial process to waive arbitration | No waiver; no sufficient prejudice shown |
| FAA section 1 exemption applicability | Exemption under FAA §1 absolves arbitration | Exemption applies to transportation workers engaged in interstate commerce | Section 1 does not exempt these employment contracts; FAA applies |
| Texas Arbitration Act §171.002 exemption | §171.002 exempts personal injury arbitrations from arbitration | FAA preempts; exemption not applicable | §171.002 does not exempt; FAA governs |
Key Cases Cited
- Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (U.S. 2001) (FAA §1 exemption limited to transportation workers actually moving goods in interstate commerce)
- In re Halliburton Co., 80 S.W.3d 570 (Tex. 2002) (procedural unconscionability not shown; take‑it‑or‑leave‑it is permissible in employment contracts)
- In re Poly-America, L.P., 262 S.W.3d 337 (Tex. 2008) (discovery limitations in arbitration not per se unconscionable; merits for arbitrator)
- In re Labatt Food Serv., L.P., 279 S.W.3d 640 (Tex. 2009) (derivative rights and pre‑death arbitration bind wrongful death beneficiaries)
- Perry Homes v. Cull, 258 S.W.3d 580 (Tex. 2008) (strong presumption against waiver; factors to assess substantial invocation of judicial process)