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Steve Didmon v. American Arbitration Association, Inc. and Frontier Drilling USA, Inc. N/K/A Paragon Offshore USA Inc.
01-16-00022-CV
| Tex. App. | Dec 8, 2016
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Background

  • Didmon sued Frontier and related entities for personal injuries from an offshore rig accident; defendants removed under the New York Convention but federal court remanded after finding one arbitration agreement unenforceable for lack of a Frontier signatory.
  • On remand, a second arbitration clause (in Didmon’s employment agreement) required arbitration in Singapore; this court later reversed a trial-court denial of arbitration and remanded.
  • The trial court dismissed Didmon’s suit without prejudice and allowed the defendants to raise limitations if Didmon did not initiate arbitration; Didmon later initiated arbitration in Singapore but did not name Frontier there.
  • Didmon then demanded arbitration with the American Arbitration Association (AAA) naming Frontier and relying on the previously-invalidated agreement; the AAA administratively refused the demand.
  • Didmon sued AAA to compel appointment of an arbitrator; Frontier intervened, asserting collateral estoppel (from the federal court ruling) and limitations defenses; the trial court denied Didmon’s motion to strike the intervention and later granted summary judgment to both Frontier and AAA.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Frontier had a justiciable interest to intervene Didmon: Frontier lacks interest because suit seeks relief only against AAA to appoint an arbitrator Frontier: A Didmon victory would force Frontier to defend arbitration; collateral estoppel and limitations bar arbitration Court: Frontier has a justiciable interest; denial of motion to strike affirmed
Whether AAA is immune from suit for refusing to appoint an arbitrator Didmon: AAA violated its rules and an arbitrator must decide enforceability/jurisdiction AAA: Arbitral immunity bars suit against AAA Court: Summary judgment for AAA vacated as moot after Frontier judgment; underlying arbitral immunity ruling not reached on appeal because Frontier judgment mooted the dispute
Effect of Frontier’s summary judgment defenses on Didmon’s claims Didmon: Defenses should be left to arbitrator Frontier: Collateral estoppel and statute of limitations preclude arbitration Court: Frontier’s unchallenged summary judgment resolving arbitrability moots Didmon’s AAA claim
Whether judgment against AAA remains after Frontier’s judgment Didmon: Seeks relief compelling AAA regardless of Frontier’s defenses Frontier/AAA: Frontier’s judgment eliminates any live controversy Court: Vacated AAA judgment and dismissed Didmon’s suit against AAA as moot

Key Cases Cited

  • In re Union Carbide Corp., 273 S.W.3d 152 (Tex. 2008) (justiciable interest required for intervention)
  • Guar. Fed. Sav. Bank v. Horseshoe Operating Co., 793 S.W.2d 652 (Tex. 1990) (intervenor has justiciable interest if it could have filed suit or defeat recovery)
  • Zeifman v. Michels, 229 S.W.3d 460 (Tex. App.—Austin 2007) (judgment for plaintiff that may lead to action against intervenor supports intervention)
  • Evan’s World Travel v. Adams, 978 S.W.2d 225 (Tex. App.—Texarkana 1998) (same principle regarding intervention)
  • Nall v. Plunkett, 404 S.W.3d 552 (Tex. 2013) (when procedural challenge fails on appeal, affirm otherwise unchallenged summary judgment)
  • Heckman v. Williamson Cty., 369 S.W.3d 137 (Tex. 2012) (justiciability and mootness principles govern appeals)
  • Williams v. Lara, 52 S.W.3d 171 (Tex. 2001) (justiciability requirement)
  • Houston Mun. Emps. Pension Sys. v. Ferrell, 248 S.W.3d 151 (Tex. 2007) (vacating judgment as to one party and dismissing mooted claims)
Read the full case

Case Details

Case Name: Steve Didmon v. American Arbitration Association, Inc. and Frontier Drilling USA, Inc. N/K/A Paragon Offshore USA Inc.
Court Name: Court of Appeals of Texas
Date Published: Dec 8, 2016
Docket Number: 01-16-00022-CV
Court Abbreviation: Tex. App.