Sheri Eddleman v. Matthew J. Ocker
13-15-00217-CV
| Tex. App. | Oct 6, 2015Background
- Parties entered a March 29, 2013 Mediated Settlement Agreement (MSA) in Victoria County providing mediation then arbitration for pre-decree disputes, including a Shell Station child-exchange provision.
- MSA required mediation with Michael P. O'Reilly and, if needed, binding arbitration; dispute resolution was to occur under those procedures.
- Judge Alcala (24th Dist. Court) found the agreement freely entered and ordered mediation/arbitration; Eddleman initially refused to mediate.
- Ocker sought to enforce the MSA and recover fees/costs, including mediation/arbitration costs; Eddleman sought to abate/transfer venue and denied enforcement.
- Arbitration occurred with Michael P. O'Reilly; the Arbitrator later issued a First Amended Arbitration Award and an addendum.
- Judge Stith (319th Dist. Court) vacated the arbitration award and directed proceedings back to arbitration in conformity with the arbitration agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the arbitrator exceed his authority by ruling on issues not pending or outside the arbitration agreement? | Ocker contends the arbitrator addressed moot or non-pending issues and ignored those within his remit. | Eddleman contends the arbitrator acted within the scope of the dispute submitted and that some issues were moot. | Yes; the arbitrator exceeded authority by ruling on issues not properly submitted and by failing to address pending issues. |
| Did the arbitrator properly resolve all pending issues from the 13th Court of Appeals and the 319th District Court as required by the arbitration agreement? | Ocker asserts all pending issues from both courts were contractually to be arbitrated. | Eddleman argues mootness and proper submission limited the arbitrator’s task. | The arbitrator did not resolve all pending issues; he deemed some moot and failed to address others as required. |
| Was it error to award attorney’s fees/costs under the MSA based on arbitration results? | Ocker sought attorney’s fees/costs under §10 of the MSA for enforcing the agreement. | Yes; the award was improper where the arbitrator did not properly apply the MSA terms and exceeded authority. | |
| Did the arbitrator commit error on venue by granting a transfer to Victoria County under the arbitration agreement? | Ocker argues venue should be Nueces County where arbitration occurred. | Eddleman argues Victoria County venue provision governs. | Arbitrator erred; venue fixed by statute to the location of arbitration, superseding contract provision. |
| Should the appellate court disturb the arbitration ruling and remand to proper arbitration? | Ocker seeks relief consistent with contract and authority of arbitrator. | Eddleman seeks affirmance/avoidance of compelled arbitration. | The court may reverse and remand/arbitrate consistent with contract due to arbitrator’s authority issues. |
Key Cases Cited
- Milner v. Milner, 361 S.W.3d 615 (Tex. 2012) (limits appellate/judicial review of MSAs with arbitration clauses; defer to arbitration when provided)
- Gulf Oil Corp. v. Guidry, 327 S.W.2d 406 (Tex. 1959) (arbitrator’s authority defined by arbitration agreement; limits on review)
- In re Lopez, 372 S.W.3d 174 (Tex. 2012) (venue/arbitration issues; waiver of court recourse when parties agree to arbitrate)
- In re Burton, McCumber & Cortez, L.L.P., 115 S.W.3d 235 (Tex. App.- Corpus Christi 2003) (orig. proceeding; arbitration framework limits court intervention)
- Kilroy v. Kilroy, 137 S.W.3d 780 (Tex. App.-Houston [1st Dist.] 2004) (waiver of rights when parties contract to arbitrate; mootness considerations)
- Wyatt v. Shaw Plumbing Co., 760 S.W.2d 245 (Tex. 1988) (abate/motion to transfer venue; dominant jurisdiction principles)
- Curtis v. Gibbs, 511 S.W.2d 263 (Tex. 1974) (standard for judicial action in arbitration/settlement contexts)
- Sweezy Constr. Inc. v. Murray, 915 S.W.2d 527 (Tex. App.- Corpus Christi 1995) (orig. proceeding; mediation/arbitration interplay)
- Texas Beef Cattle Co. v. Green, 921 S.W.2d 203 (Tex. 1996) (fees/costs under mediation/arbitration framework)
- Pettus v. Pettus, 237 S.W.3d 405 (Tex. App.-Fort Worth 2007) (arbitrator authority and review; limits of award)
