Sherry Parker v. United-Bilt Homes, LLC
12-17-00054-CV
| Tex. App. | Dec 13, 2017Background
- In 2010 Sherry and William Parker contracted with United-Bilt to build a home; the contract included an arbitration clause. The Parkers stopped payments in December 2011.
- United-Bilt sought foreclosure and initiated arbitration; an arbitrator awarded United-Bilt $125,310.29 plus interest, fees, costs, and permitted foreclosure after 30 days.
- The federal district court confirmed the arbitration award; William appealed to the Fifth Circuit.
- United-Bilt and the Parkers later executed a post-award settlement reducing the payoff to $125,000 to be paid within 44 days, but the Parkers did not perform.
- United-Bilt scheduled a new foreclosure; Sherry sued in state court seeking injunctive and declaratory relief while United-Bilt counterclaimed to confirm the arbitration award. The trial court confirmed the arbitration award and denied Sherry’s relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the post-arbitration settlement was a valid contract that superseded the arbitration award | Parker: she was not a proper party, lacked capacity, and signed under undue influence, so settlement should control | United-Bilt: settlement was not performed by Parkers; arbitration award remains enforceable and must be confirmed absent grounds for vacatur | Court: Written judgment confirmed arbitration award; Parkers breached settlement, so it cannot supersede the award; confirmed arbitration award |
| Whether Sherry was a party to the arbitration such that she is bound by the award | Parker: asserted she was not made a party to the arbitration | United-Bilt: arbitration documents list Sherry; her counsel participated and submitted materials | Court: Sherry was a party and participated in arbitration; res judicata applies to issues litigated there |
| Whether the arbitration award should be vacated | Parker: did not assert statutory grounds for vacatur in trial or on appeal | United-Bilt: award should be confirmed because no vacatur grounds shown | Court: No FAA/TAA vacatur grounds were argued or proven; confirmation mandatory |
| Whether prior arbitration rulings (e.g., capacity) are relitigable | Parker: sought to challenge capacity post-arbitration | United-Bilt: capacity was litigated in arbitration and denied by arbitrator | Court: Arbitrator addressed capacity; res judicata bars relitigation |
Key Cases Cited
- Seasha Pools, Inc. v. Hardister, 391 S.W.3d 635 (Tex. App.—Austin 2012) (written judgment controls over oral trial pronouncements)
- Amoco D.T. Co. v. Occidental Petroleum Corp., 343 S.W.3d 837 (Tex. App.—Houston [14th Dist.] 2011) (review of arbitration awards is narrowly confined)
- Hall St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576 (U.S. 2008) (statutory grounds for vacatur under the FAA are limited)
- Hoskins v. Hoskins, 497 S.W.3d 490 (Tex. 2016) (TAA vacatur standards and requirements)
- Zanchi v. Lane, 349 S.W.3d 97 (Tex. App.—Texarkana 2011) (definition of a party to an action and who is bound)
- CVN Group, Inc. v. Delgado, 95 S.W.3d 234 (Tex. 2002) (arbitral awards given effect of judgments of a court of last resort)
- John G. & Marie Stella Kenedy Mem. Found. v. Dewhurst, 90 S.W.3d 268 (Tex. 2002) (res judicata bars relitigation of issues that were or could have been raised)
- Mustang Pipeline Co., Inc. v. Driver Pipeline Co., Inc., 134 S.W.3d 195 (Tex. 2004) (material breach excuses nonbreaching party from further performance)
- Ramex Constr. Co. v. Tamcon Servs. Inc., 29 S.W.3d 135 (Tex. App.—Houston [14th Dist.] 2000) (a defaulting party generally cannot enforce the contract)
- Joseph v. PPG Indus., Inc., 674 S.W.2d 862 (Tex. App.—Austin 1984) (one who breaches a contract cannot recover on it)
- Hogan v. J. Higgins Trucking, Inc., 197 S.W.3d 879 (Tex. App.—Dallas 2006) (a ruling may be implicit where it can be understood from the record)
