T.W. Odom Management Services, Ltd. v. Thomas Williford
09-16-00095-CV
| Tex. App. | Aug 25, 2016Background
- Plaintiff Thomas Williford was hired by defendant T.W. Odom Management; as a condition of employment he signed a 2013 arbitration agreement and participated in an ERISA-governed non-subscriber workplace injury benefit plan.
- Williford was injured at work in January 2014, collected over $90,000 in benefits under the Plan, and later sued T.W. Odom for negligence seeking traditional tort damages (lost earnings, medical expenses, pain and suffering).
- Williford signed a second arbitration agreement in September 2015 and timely revoked the 2015 agreement; he argued the revocation rendered the 2013 agreement ineffective.
- The 2013 arbitration agreement broadly covers "all claims," expressly includes tort claims, excludes "workers’ compensation, non-subscriber compensation or unemployment benefits," incorporates the AAA employment rules, and expressly delegates to the arbitrator exclusive authority to decide interpretation, applicability, enforceability, and jurisdictional issues.
- The trial court denied T.W. Odom’s motion to compel arbitration, finding the case was essentially a non-subscriber claim excluded from arbitration; T.W. Odom appealed under the FAA via Tex. Civ. Prac. & Rem. Code § 51.016.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court should decide if Williford’s negligence claims fall within the arbitration agreement or whether that gateway issue was delegated to the arbitrator | Williford: his claims are non-subscriber compensation claims excluded from arbitration; he also argued the 2015 revocation invalidated arbitration | T.W. Odom: the 2013 agreement remains operative; the agreement delegates arbitrability and the arbitrator should decide scope | Court: The 2013 agreement clearly and unmistakably delegated gateway arbitrability issues to the arbitrator; trial court erred; arbitration compelled |
| Whether Williford’s negligence claims are tort claims within the scope of the arbitration agreement | Williford: claims are non-subscriber compensation in substance and thus excluded | T.W. Odom: claims are tort claims and fall within the 2013 agreement’s scope | Court: Did not decide on the merits because delegation required arbitrator to resolve that question (issue resolved in favor of delegation) |
Key Cases Cited
- Rent-A-Center, West, Inc. v. Jackson, 561 U.S. 63 (2010) (parties may delegate gateway arbitrability questions to an arbitrator)
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995) (clear-and-unmistakable evidence required to delegate arbitrability)
- J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223 (Tex. 2003) (burden shifts to opponent after valid arbitration agreement shown)
- In re Labatt Food Serv., L.P., 279 S.W.3d 640 (Tex. 2009) (abuse-of-discretion standard for denial of motion to compel arbitration)
- G.T. Leach Builders, LLC v. Sapphire V.P., LP, 458 S.W.3d 502 (Tex. 2015) (distinguishing substantive vs. procedural arbitrability questions)
- McGehee v. Bowman, 339 S.W.3d 820 (Tex. App.—Dallas 2011) (trial court must send gateway arbitrability disputes to arbitrator when delegation is clear)
