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Richmont Holdings, Inc. v. Superior Recharge Systems, L.L.C.
392 S.W.3d 633
| Tex. | 2013
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Background

  • Richmont Holdings owns imaging supply businesses and acquired Superior Recharge via an asset purchase agreement that requires arbitration of disputes arising from the agreement.
  • Jon Blake, owner/manager of Superior Recharge, was hired as Superior Acquisition’s general manager under an employment agreement that lacked an arbitration clause.
  • Blake’s employment ended six months after the August 14, 2007 signing of both agreements.
  • Blake sued Richmont and related entities for fraud and other relief, including cancellation of his covenants not to compete.
  • Richmont moved to compel arbitration after an 18-month delay; the trial court denied the motion
  • The court of appeals affirmed the denial on a different rationale, and Richmont petitioned for review arguing the asset purchase arbitration clause covers the dispute and that waiver defenses should be considered.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does the asset purchase arbitration clause cover Blake’s suit? Blake argues the dispute arises from employment, outside the asset purchase scope. Richmont contends the asset purchase clause governs all disputes relating to the agreement, including this suit. Yes; arbitration clause applies to the dispute.
Did Richmont waive its right to arbitrate by delay and litigation conduct? Blake contends Richmont waived by substantial invocation of judicial process. Richmont argues waiver defenses were raised; the status of waiver is for remand/analysis. Waiver issue to be resolved on remand; Supreme Court reversed lower court on scope and permitted waiver consideration.
Should the court apply severability of arbitration clauses when multiple agreements are involved? Blake emphasizes employment agreement lacks arbitration clause, possibly outside scope. Richmont relies on asset purchase arbitration term to bind related disputes. Arbitration clause in asset purchase governs the dispute; employment agreement’s lack of clause does not defeat it.

Key Cases Cited

  • Forest Oil Corp. v. McAllen, 268 S.W.3d 51 (Tex. 2008) (court must compel arbitration when a valid agreement governs and defenses fail)
  • In re FirstMerit Bank, N.A., 52 S.W.3d 749 (Tex. 2001) (no discretion to deny arbitration when within scope and defenses lacking)
  • In re J.D. Edwards World Solutions Co., 87 S.W.3d 546 (Tex. 2002) (per curiam; enforce arbitration agreements when applicable)
  • Cantella & Co., Inc. v. Goodwin, 924 S.W.2d 943 (Tex. 1996) (enforcement of arbitration agreements absent defenses)
  • Certain Underwriters at Lloyd's of London v. Celebrity, Inc., 988 S.W.2d 731 (Tex. 1998) (interlocutory appeal when decision conflicts with precedent)
Read the full case

Case Details

Case Name: Richmont Holdings, Inc. v. Superior Recharge Systems, L.L.C.
Court Name: Texas Supreme Court
Date Published: Jan 25, 2013
Citation: 392 S.W.3d 633
Docket Number: No. 12-0142
Court Abbreviation: Tex.