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J.M. Davidson, Inc. v. Webster
49 S.W.3d 507
Tex. App.
2001
Check Treatment

*1 DAVIDSON, INC., Appellant, J.M. WEBSTER, Appellee.

Chelsey J.

No. 13-00-626-CV. Texas, Appeals

Court

Corpus Christi.

May 2001. July

Rehearing Overruled *2 alternative, appellant, In the

аrbitration. (“Davidson”), this Davidson, asks Inc. J.M. mandamus order- a writ of to issue Court *3 grant the trial court to ing the the trial affirm We compel arbitration. order, request deny appellant’s court’s of mandamus. for writ A. BACKGROUND HISTORY AND PROCEDURAL compel, the motion hearing At the from only argument heard the trial court party pre- counsel. Neither parties’ affidavits, discovery, No sented evidence. into evidence. were offered stipulations or are following pleadings,1 Based on December undisputed facts. On Chelsey appellee, hired Davidson Webster, On December as a mechanic. appellee sign that required Davidson Poli- Dispute Resolution an “Alternative states, part, as fol- relevant cy,” which lows: Davidson, Inc.

J.M. ALTERNATIVE DISPUTE Makowski, Royston, Rayzor, J. Chester RESOLUTION Antonio, Druce, Vickery, Novak & San POLICY Morris, Royston, Rayzor, Vickery Myra K. APPLICATION EMPLOYMENT Christi, Williams, Ruth A. L.l.p., Corpus LANGUAGE Silvers, Wesely, Royston, Rayzor, Nathan Williams, Houston, Appel- Vickery & for I, is af- signature whose applicant lant. hereto, Com- and the above listed fixed (hereinafter to as the referred pany, Christi, Nielsen, Corpus Richard Daniel all of its offi- “Company”), for itself and Appellee. for directors, cers, employees, agents YÁÑEZ, mutually agree and contract HINOJOSA, all of which Before Justices claims, disputes or con- any and all and CASTILLO. troversies, based on the Con- whether Code(s), [sic], Statutes, Ordi- struction OPINION Orders, nances, Rules, Regulаtions, Opinion by Justice HINOJOSA. of he United [sic] common law and/or subdivisions, of ei- all interlocutory appeal from the States This is and/or ther, basis asserted on the trial court’s denial of a and/or Anglin Tipps, Inc. v. B. may summarily whether to decide 1. A court affidavits, compel arbitration on the basis discovery, stipulations. Jack pleadings, contract, quasi-contract, personal injury, tort, offenses, quasi-offenses or other- ACCEPTED AND AGREED TO:

wise, of, arising any or out or in way APPLICANT: C.J. Webster PRINTED [signed] NAME: relating application to this employ- for DATE; 12-15-97 S.S. security # [social ment, application or other for em- number] ployment I may previously have Appellee sustained an on-the-job injury submitted, future, or may submit in thе 3, 1998, on November and filed for work- Company’s or the decision to hire or not compensation ers’ benefits. He subse- me; to hire including arbitrability However, quently returned to work. ap- claim, dispute, controversy shall *4 pellee’s condition deteriorated and his exclusively finally by be and settled treating physician placed him on “no work” by, arbitration administered thereafter, appellee’s status. Soon em- Conducted [sic] under the Arbitration ployment with Davidson ceased. of, Arbitrator(s) Rules and before the an Arbitration Tribunal of the National Davidson, Appellee sued alleging he had Resolution, Inc., Dispute Association for been filing terminated retaliation for a pursuant provisions to the of the Feder- compensation workers’ claim.2 Davidson al Arbitration Act any applicable and/or compel filed a motion to arbitration. Act, Dispute Alternative Resolutions Davidson pol- asserted the arbitration effect, whichever shall have the broadest icy appellee signed had was a binding arbi- all claims of any rights contrary, to the tration agreement appellee’s and that including any right by trail jury, to [sic] scope agree- claims fell within the of the being hereby expressly waived. ment. trial The court denied the motion stating

without a reason. Davidson then interlocutory appeal filed this and manda- If еmployed, agree I to abide and compel mus action. Davidson seeks rules, comply policies ‍‌​‌‌​‌​​​​‌‌​‌‌​‌​​​​‌​​​‌​‌‌​‌​​‌‌‌​‌‌‌‌‌​​‌​‌​‍with all of the and arbitration under the Texas Arbitration procedures of the “Company.” under- Act3 and the Federal Arbitration Act.4 stand that if I employed by am

“Company,” employment such will be B. Jurisdiction “Company” may “at-will” and that Act, my employment terminate Under Texas Arbitration at time interlocutory appeal may an be taken for reason. from compel a trial court’s of a denial arbitration. See Tex.Civ.PRAc. & Rem.Code 171.098(a)(1) (Vernon § Supp.2001). supervisor person No or other than the Ann. appropriate remedy Mandamus is the “Company” change President of the can improperly when the trial court denies a modify any employment otherwise compel pursuant motion “Company” reserves Act. L L re & unilaterally abolish or modi- the Federal Arbitration Assocs., L.P., prior Kempwood fy any personnel policy without (Tex.1999) curiam); EZ Pawn (per notice. (Vernon § § 2. See 451.001 171.001 Tex.Lab.Code TexCiv.Prac. & Rem.Code Ann. Ann. (Vernon 1996) (an Supp.2001) employer may discharge an employee because the has filed a faith). (2000). compensation good § 2 workers’ claim in 4. 9 U.S.C.

5H evidentiary Mancias, must conduct an the trial court Corp. v. 934 S.W.2d facts in will to cor determine the material hearing Mandamus issue or the party rect a clear abuse of discretion Id. Once a establishes dispute. duty imposed by law when violation of the arbitration scope within the claim adequate by law. remedy there is no other must the trial court agreement, Packer, Walker v. stay proceedings its own (Tex.1992). a party When seeks party opposing arbitration unless Texas Arbitra arbitration under evidence presenting its burden of meets Act, tion the Federal Arbitration Act and Oakwood, 987 prevents enforcement. parallel an pursue proceedings: he must 573; Inc. Cantella denying interlocutory appeal the order (Tex.1996) Goodwin, act, under the Texas curiam). (per request a writ of from for mandamus court’s deter We review a trial Ang the federal B. denial under act. Jack concerning mination the existence ., Tipps, lin Inc. v. Co. an abuse agreement under (Tex.1992); Stewart Co. Title Guar. *5 Roosth, standard. 27 S.W.3d at discretion 330, Mack, (Tex.App. 945 S.W.2d 331 Servs., 3; 207; at Ins. 27 S.W.3d ANCO 1997, w.o.j., pet. Dist.] —Houston dism’d [1st Strictly v. Group, Hardin Const. Inc. denied). mand. (Tex. Inc., 308, Painting, 945 312 S.W.2d 1997, orig. proceeding Antonio App. — San STANDARD OF REVIEW C. denied]). standard, Under this we [mand. party seeking A arbi un uphold the trial court’s decision must of an tration must establish the existence trial court could less we conclude that the that the and show decision. reasonably have reached one scope fall within of that claims raised Hardin, Roosth, 207; 945 27 S.W.3d at In re Mobile Oakwood here, Where, as trial S.W.2d at 312. (Tex. Homes, Inc., 571, 987 573 S.W.2d facts findings not enter of and court does 1999) curiam); (per H.E. Butt re Gro law, the trial we must affirm conclusions (Tex Co., cery 360, 17 S.W.3d 366-67 if evi decision there is sufficient court’s 2000, .App. orig. pro [14th Dist.] — Houston support any legal theory it upon dence to one ceeding). party When denies he v. Pepe Dev. Co. Gar asserted. Internat'l agreement, bound an arbitration 925, cia, (Tex.App 915 S.W.2d 929 summarily trial court must determine . —Hous 1996, writ). if Even we Dist.] ton no [1st whether an exists to arbitrate differently, have decided the issue would parties. between the Rem. Tex.Civ.Prac. finding trial court’s we cannot disturb the (Vernon Supp.2001); § 171 .021 Code Ann. arbitrary it is shown to be and unless Assocs., L.L.P. Pathology Southwest Tеx. Walker, at 840. unreasonable. 827 S.W.2d Roosth, 204, (Tex.App.— v. 27 S.W.3d conclusions, however, are reviewed Legal 2000, filed); pet. ANCO Ins. San Antonio Id.; Pony Express Courier Houston, Romero, de novo. Servs. Inc. v. (Tex. Morris, 817, v. 2000, Corp. S.W.2d 1, (Tex.App. Antonio — San writ). 1996, Antonio Wheth denied). App. no summarily A de pet. may court — San duty on the imposes an er on the cide whether dispute a matter of affidavits, to arbitrate a discovery, parties pleadings, basis of interpretation question and Anglin, at contract stipulations. and 842 S.W.2d the court. Tenet Healthcare Ltd. However, necessary if law for material facts controverted, (Tex.App.— Cooper, the issue v. 960 S.W.2d are determine 388; Belmont, Houston [14th writ Dist.] dism’d at 896 S.W.2d at 356-57. w.о.j.); O’Quinn, Kline v. 874 S.W.2d agreement imposes Whether an a duty on (Tex.App [14th Dist.] parties to arbitrate a is a mat . -Houston denied). writ and, thus, ter of contract interpretation question of law for the court. Tenet Binding

D. Is TheRe a ÁRBitration Healthcare, 388; Kline, 960 S.W.2d at Agreement? 782. The existence of a valid Arbitration is a contractual is determined ‍‌​‌‌​‌​​​​‌‌​‌‌​‌​​​​‌​​​‌​‌‌​‌​​‌‌‌​‌‌‌‌‌​​‌​‌​‍by the substan proceeding by parties, which the in order tive contract law of Texas. See Tenet to obtain a speedy inexpensive final Healthcare, 960 S.W.2d at 388. Under disposition matters, disputed consent to law, Texas enter into a binding submit controversy to arbitrators for contract following when the elements exist: Clements, determination. See Porter & (1) (2) offer; an acceptance in strict Stone, (Tex. L.L.P. v. (3) compliance offer; with the terms of the App. pet.). [1st Dist.] no minds; (4) a meeting of the party’s each Arbitration is a creature of contract and a terms; (5) consent to the execution clause requiring interpreted arbitration is delivery of the contract with the intent principles. under contract Tenet Health that it binding. be mutual and Buxani care, 388; 960 S.W.2d at Belmont Con Nussbaum, structors, Inc. Lyondell Petrochemical 1997, writ); Antonio no McCul — San (Tex.App. ley Fine Gallery, Arts Inc. v. “X” Part 1995, writ); —Houston City [1st Dist.] ners, *6 860 (Tex.App. S.W.2d 477 — El Garcia, Alamo v. 878 S.W.2d writ). Furthermore, Paso no consid 1994, writ). (Tex.App —CorpusChristi no . eration is a any fundamental elemеnt of The Federal Arbitration Act and the Texas Alsobrook, valid contract. Copeland v. Act provide Arbitration that a con (Tex.App S.W.3d Antonio tract to submit to arbitration is valid and . —San denied); Renz, pet. Smith v. upon enforceable “save grounds such as (Tex.App. Corpus exist at law or in equity for the revocation — denied). any (2000); § contract.” U.S.C. Christi writ § 171.001 Tex.Civ.Prac. Rem.Code Ann. Healthcare, In Cooper, Tenet a longtime (Vernon Healthcare, Supp.2001); Tenet employee, given was a employee new 960 S.W.2d at agree 387-88. Arbitration handbook, employer which said that subject ments are to the same defenses as would “assure access to Garcia, аny other contract. See procedures for if solving disputes, neces- at 665-66. sary,” but that the in- handbook was not party A seeking ar tended to legal constitute a contract “be- bitration must first establish his cause that can occur awith written Garcia, remedy under a contract. [by company executed certain 878 S.W.2d at 665. Texas law favors arbi Healthcare, Tenet executives].” Knutson, County tration. Brazoria at page 387. The last of the hand- (1943). Al Tex. 176 S.W.2d form,” “acknowledgment book was an though presumption there is a in favor of following language: which included the arbitration, may a court not order arbitra AMI employees employed [A]ll in are tion the absence of a valid arbitration Healthcare, agreement. Tenet 960 S.W.2d an “at-will” basis. was an “at will” Cooper out that

set as a of con- employee and that condition em- regarding No written sub- employment, agreed she tinued ap- will be honored unless ployment concerning her em- complaints mit by in proved writing Executive director to arbitration. ployment I makes and above.... understand AMI Id. for available arbitration resolution I a

grievance. also understand that as Texas appeals The court of also cited the employment holding Light condition and continued v. Centel Supreme Court’s employment, com- agree submit Cellular Healthcare, рrocess and

plaints published to the Tenet held Light, supreme final In court agree accept to abide be ulti- for a valid contract panel decision of the arbitration as that consideration employ employer and an at-will my for tween complaint(s) mate resolution of employ cannot on continued depend all ee any and events that arise out of promise illusory. a ment because such employment employ- or termination of supreme court stated: ment. promise, by a either Consideration for signed Cooper acknowledgment

Id. in an at- employer discharged, form. Id. She was later employment, dependent cannot be will wrongful sued Tenet Healthcare for dis- period employment. continued on a Id. charge. The trial court denied be- promise illusory Such would be arbitration, employer’s who promisor cause it to bind fails stating affirming without Id. reason. always option retains ‍‌​‌‌​‌​​​​‌‌​‌‌​‌​​​​‌​​​‌​‌‌​‌​​‌‌‌​‌‌‌‌‌​​‌​‌​‍the of discontinu- decision, trial court’s First Court employment performance. in lieu of ing held Appeals there was enforceable sup- illusory promises are all that When because, contract between the contract, port purported bilateral language while the of the handbook there is no contract. acknowledgment purported bind the (citation it employee, explicitly did 883 S.W.2d at 644-45 omit- Light, not bind *7 ted). Id. company. at 388. The court stated: preface

The to the handbook has been that The Tenet Healthcare court noted explicitly above. It that quoted states at-will, employment the under doctrine the handbook to con- was intended the company Cooper have the “could fired legal can stitute contract “because that acknowledg- the very signed minute she only occur with ex- a written Healthcare, Tenet ment form.” by a facility ecuted Executive director appeals at 389 n. 5. The court of an AMI Senior Executive Officer.” was unen- held the arbitration clause then that no written The evidence shows such (1) the for two reasons: because forceable agreement was ever so executed. employee, was at-will there (all parties between acknowledgment form has also was no contract the parties was quoted language above and the that existed between been promise employment); of at-will explicitly illusory about the nothing states (2) in the binding employer, language is disclaimer document acknowledgment employer right reserved the to handbook and on and the employer that the any provisions expressly or of the form denied amend rescind in the out appropriate” policies it deemed was bound set handbook “as with agree It Id. at its sole was further handbook. 388-89. We within discretion. (“The reasoning appeals of the court of in at 758 language of the arbitration Tenet Healthcare. binding upon indicates it Lumber, parties.”); both Alamo case, In the instant the “Alterna (“Since at 579-80 surrendered Dispute tive Resolution Policy-Employ their rights by jury, to trial these mutual Application ment Language” shows that promises consideration.”). supply valid appellee’s at-will; employment was Because we have held this case that the only president Davidson’s could modify an Dispute “Alternative Policy- Resolution employment agreement; and that David Employment Application Language” son right unilaterally “reserve[d] the sought tо bind the employee, not the modify any personnel abolish or policy company, we conclude these cases are not without prior Furthermore, notice.” just controlling. Healthcare, like Cooper in Tenet appellee compelled was sign after We hold that Davidson failed to meet its employment already his had begun. proof burden of that a agreement exists. Accordingly, the trial We conclude that the alternative resolu- court did not err in denying Davidson’s dispute tion policy in this case is not bind- Appellant’s arbitration. ing on parties. Although Davidson sole issue is overruled. agreed claims, “any submit and all dis- putes or arising controversies” it between The trial denying court’s order David- appellee arbitration, it explicitly son’s motion for arbitration is af- retained the absolute modify petition firmed. Davidson’s for a writ of policy terminate the time. mandamus is denied.

Further, we conclude that Davidson gave Dissenting Opinion by no consideration for purported Justice agreement. Appellee CASTILLO. was al- ready working for Davidson when he CASTILLO, Justice, dissenting. signed the alternative resolution I concur with majority’s decision to policy, and implied benefit of continued deny petition Davidson’s for of man- writ employment illusory for an at-will em- However, regard damus. with ma- ployee. jority’s decision to affirm the trial court’s brief, reply its Davidson cites In re denying order Davidson’s motion to com- Jebbia, 26 S.W.3d (Tex.App. arbitration, pel I respectfully dissent. 2000, orig. proceeding), [14th Dist.] and In would hold that a agree- valid arbitration (Tex. re Alamo Lumber 23 S.W.3d 577 *8 ment exists and the claim asserted falls 2000, Antonio orig. proceeding), — San scope within the of the agreement. in support of its contention that “mutual promises by employer an and JURISDICTION

giving up the to litigate are sufficient support consideration to petition Both the for writ of mandamus However, agreement.” in interlocutory appeal both these and the address the cases, language the propriety of the arbitration of the trial court’s denial of an agreement showed that it employer’s stay was will the trial Jebbia, upon parties. both 26 proceedings See S.W.3d court arbitration.1 notes, (“FAA”), (2000), majority 1. As the § since the arbitration tration Act 9 U.S.C. 2 ("TGAA”), addresses both the Federal Arbi- the Texas General Act Arbitration comm affecting interstate jurisdiction a transaction subject matter To determine Godt, In Pamela re See disposition of erce.3 proper thus the over and 732, (Tex.App -Corpus us, we first determine S.W.3d matter before must . (federal 2000, orig. act proceeding) applies.2 the FAA or Christi whether the TGAA not applied if the contract does will not be undisputed It that Davidson seeks is commercе). to relate interstate both and that arbitration under acts un- us is scant. The both. The record before addressed that Webster resides designate disputed in the facts show arbitra "Where Pass, former and his in Texas which statute Aransas tion Davidson, Inc., corpora- a control, employer J.M. they to have the court should wish in the state D. Co. do business apply their choice. Wilson Constr. tion authorized 388, Texas, in Pass as is located Aransas Equipment v. Cris of 988 S.W.2d 1999, heavy-equipment a (Tex.App -Corpus orig. well. Webster was Christi . Here, injured. These facts to mechanic and was proceeding). parties agreed a conclusively establish apply act “shall have broad are insufficient whichever subject involving commerce.”4 purposes est of our “transaction effect.” For however, Therefore, presented jurisdiction based the record jurisdiction, matter on Court, majority in this concur parties’ agree cannot be conferred Gantt, deny mandamus relief under ment. Russ Berrie & Co. v. 998 decision to 1999, 713, jurisdiction therefore (Tex.App S.W.2d Paso the FAA.5 Our . —El of the TGAA. pet.). Accordingly, premised provisions no. Ann. record before us are first examined under & Rem.Code Tex.Civ.PRAc. (Vernon 171.098(a)(1) Supp.2001). § act if of the federal to see there is evidence 171.098(a) L § extent. In re L & Clause to fullest Rem.Code Ann. Tex.Civ.Prac. Assoc., L.P., (Vernon ) Supp.2001 urged Kempwood аnd the two were S.W.3d ( below, seeking party Tex. pursue parallel pro under both statutes must Mancias, ceedings. Corp. EZ Pawn v. alleges party 4. A who interstate commerce 1996); Anglin Jack B. Co. may variety ways: a it in of location of show (Tex. 1992). Tipps, v. state; transportation headquarters in another lines; of materials across state manufacture state; billings prepared response hostility parts 2. The FAA was a of in a different state; phone arbi- mail and calls American courts to enforcement of out interstate Stores, Profanchik, support agreements. City of a In re tration Circuit Inc. in contract. Adams, (Tex.App. Corpus Christi 532 U.S. 121 S.Ct. — (2001). orig. proceeding). 149 L.Ed.2d casе, light I would applies of the record this 3. The federal act to all suits in state deny also mandamus relief because Davidson and federal court when the concerns remedy by interlocutory ap evidencing adequate involv has an "contract transaction peal. Anglin, 272. To be ing application its 842 S.W.2d at commerce” and mandamus, a solely shipment remedy relator entitled to limited interstate two-prong requirements goods. Anglin, at 269. The cre must meet Packer, 827 839- employment relationship which test. ation of an Walker (1) *9 (Tex.1992). show that The relator must involves commerce is sufficient. White-Weld discretion, 485, Mosser, (Tex clearly abused its the trial court v. 587 S.W.2d Co. 1979, n.r.e.). (2) by adequate remedy relator has no .Civ.App. writ ref’d and the - Dallas power grant appeal. This has no "involving is in Id. Court The term commerce” thus conditions. terpreted equiv relief absent these broadly and is the functional mandamus 916, commerce,” Ct.App., 700 S.W.2d "affecting signaling the Johnson v. Fourth of alent (Tex. 1985) (orig.proceeding). Congress to exercise its Commerce intent of nied). Since no evidence other than the “Alter The burden then shifts to the op Dispute native Policy” ques Resolution posing party ground to establish some for tion was introduced at the the hearing on of the revocation ‍‌​‌‌​‌​​​​‌‌​‌‌​‌​​​​‌​​​‌​‌‌​‌​​‌‌‌​‌‌‌‌‌​​‌​‌​‍the arbitration agree arbitration, compel no there are Hоmes, ment. In re Oakwood Mobile questions factual in dispute. The is (Tex.1999) Inc., 571, 987 S.W.2d (per us, then, sue before is the trial court’s curiam). question Since whether a legal interpretation pro of the arbitration agreement valid gov arbitration exists is vision. Accordingly, ap de novo review is law, erned substantive contract a re propriate. Bryan, Nationwide Inc. v. viewing court must determine whether Dyer, 518, (Tex.App.— 969 S.W.2d parties willingly into a entered mutu pet.). Austin ally binding contract for arbitration for given. which consideration was See Kline THE AGREEMENT TO ARBITRATE O’Quinn, (Tex. v. 874 S.W.2d A party seeking writ de [14th Dist.] must an “application” make for court a nied). order. Tex.Civ.Prac. & Rem.Code Ann. 171.021(a), 171.024(b) (Vernon §§ Supp. DISCUSSION party requests Once and agree demonstrates that written copy Davidson filed a verified of a writ- ment to arbitrate exists and the claims agreement ten arbitration which Webster presented scope fall within the signed. Central to this is that dissent agreement, the trial court shall an enter provides us par- document before that the order requiring arbitration of those claims. “mutually agree ties and that any contract (Ver § 171.021 Tex.Civ.Prac. & Rem.Code claims, all disputes and or controversies non Supp.2001); Capital Props, Income v. claim, ... including arbitrability (Tex. Blackmon, 23-24 dispute or controversy shall be exclusively 1992). The initial of establishing burden finally by binding settled that a agreement valid arbitration exists is ... That parties agreed ”. to arbitrate party EZ seeking arbitration. claim, arbitrability dispute Mancias, Corp. Pawn v. 934 S.W.2d 91 controversy presents the compelling most (Tex.1996). Once the existence of an arbi reason to enforce the established, agreement tration has been dispute The current entails Davidson’s presumption favoring attaches arbitration. Goodwin, contention that the arbitration Co. Cantella & 924 S.W.2d is valid and Webster’s contention that it (Tex.1996); is Prudential Sec. Inc. Marshall, party disputed not.6 Neither existence 1995) arbitrate, of the (orig.proceeding); Dallas neither Cardiology Assoc., Mallick, P.A. v. party challenged agree- consent 212 (Tex.App. dе- pet. ment.7 Davidson has made an initial — Texarkana commerce,” 6. appeared The record is as considered it volves "interstate the con- ruling public policy. before the trial court time at the of its tract violates on the motion to In re arbitration. Profanchik, signed separate Before 7. As Webster court, urged trial Webster that arbitration his consent and does contest agreement, question should not be ordered do not because arbitration we reach employment implied affirmative defense unavailable under of whether his continued Code, Mills, Inc., illusory, Hathaway Texas Labor the contract under consent v. Gen. Jebbia, (Tеx.1986). neither the nor the in- re Cf.

517 1016, Ferguson, Ferguson arbi- v. S.W.2d parties agreed that to showing writ). parties’ agreement 1937, to submit trate. The no (Tex.App. — Eastland claim, or arbitrability dispute of of a element is fundamental Consideration supports to a find- controversy arbitration contract; it can consist of a every valid is within the ing dispute that the current or a or detri promisor to the loss benefit scope agreement. of the arbitration Renz, v. promisee. to the Smith ment illuso- Concluding agreement that the is 702, (Tex.App. Corpus S.W.2d — however, ry, majority holds that denied). 1992, Where there is writ Christi proof did not meet its burden of Davidson agreement, the benefit of binding agree- to show that a to avоid ex bargain right is therefor ment exists absent consideration by arbitrat delay litigation of pense and was and further holds 753, Jebbia, In re ing. parties. majority’s The both 2000, (Tex.App. [14th Dist.] — Houston conclusions are addressed seriatim. proceeding). orig. Consideration a reciting A written instrument consid agree- that the majority The concludes Gentry, imports one. Warren eration illusory is ment to arbitrate because 151, 1025, 1025-26 Tex.Civ.App. 50 S.W. provided no The Davidson consideration. writ). 1899, To (Tex.Civ.App. offset agreement expressly provides that consideration, it of legal presumption this parties “mutually agree and contract” to present upon Webster to was incumbent The disputes submit their to arbitration. question on the legally admissible evidence par- expressly also waives the He not. Ac lack of consideration. did of respective by ties’ to Both right jury. trial cordingly, before us the record discloses claim, parties agreed to submit he a employer agreed his and to controversy, arbitrability including the the courtroom to address forum outside thereof, to arbitration and in return each claims, disputes, and their controversies. Both relinquished jury. trial parties stood to By agreement, their both were, therefore, to agreed obligated and cost and time to by the reduced benefit arbitrability submit not their of objective disputes, which is the detеrmine arbitrability but also the of they agreed At time to of arbitration. claim binding Webster’s retaliation arbi- arbitrate, parties gave up something tration. the case value them-the take agree The essence of arbitration agree directly jury This mutual to a trial. third controversy ment to submit a provides sufficient consideration ment Coll., Baptist party. See Manes Dallas In re support (Tex.App. — Dallas 756; Jebbia, In re Alamo 26 S.W.3d at n.r.e.). purpose writ ref'd Co., 23 formalities, Lumber avoid de 2000, orig. proceeding). ordinary Antonio lay expense litigation. — San employment contained in (Tex.App. [14th Lumber, (arbitration handbook); re Alamo orig. proceeding) Dist.] (Tex.App. аccepted Antonio it was as a condi stated — San signed orig. proceeding) (employee employment); Ltd. v. tion of Tenet Healthcare “Employee Acknowledgment” that arbitration (Tex.App.— Cooper, 960 S.W.2d required em w.o.j.) as condition continued writ dism'd was [14th Dist.] Houston ployment). (agreement to arbitrate was made condition *11 right modify Davidson’s to or terminate right tained the to of

personnel policies claim, any controversy. or Noth- in ing the document us before limits the majority The concludes that arbitration ability employer of either the or the em- binding is not parties on both because ployee to employment terminate at will. Davidson right rеtained the absolute to modify or agreement any terminate the at majority The that opinions concludes the time. The agreement to arbitrate is con- in In and In re Jebbia re Alamo Lumber tained in the same document that also Co., relies, upon which Davidson are paragraph addressing contains a employ- controlling. majority The acknowledges ment application policies. This second that in both cases the language of the paragraph contains the statement that the was held to bind company the to right unilaterally “reserves promises both and that mutual to modify any personnel abolish or policy supplied arbitratе valid consideration. Re notice,” without prior upon which the ma- lying upon Tenet Ltd. Healthcare v. Coo jority bases holding. para- its The second per, (Tex.App. 960 S.W.2d 386 graph language stating also contains that 1998, w.o.j.), [14th writ dism’d Dist.] the “ “employment will be ‘at-will’ and that majority the agreement concludes that may “employment Davidson terminate here to sought employee. bind the any any time and for reason.”8 Tenet, however, There, is distinguishable.

An agreement to in employee arbitrate contained a neither the handbook nor the written from separable acknowledgement contract the en form language contained tire contract and is valid аnd binding employer. enforceable the The language spite in any upon of attack made the merely con established the existence of a con tract Pepe as a whole. Int’l Dev. v. Co. ditional to arbitrate. See (Tex. Hutton, Tucker, Pub. Brewing, 915 Shearson Lehman Inc. v. writ). [1st Dist.] 920 (Tex.App. Corpus - Houston - That employer right the has to w.o.j.). the unilat Christi writ dism’d The erally modify personnel poli terminate or Court Appeals, Fourteenth which decid Tenet, negate employee’s cies does not ed right has also now held that mutual claim, “any promises give up right litigate arbitration of dis pute controversy” conjunction or in can supporting with constitute consideration Id.; Gonzalez, Jebbia, employment. his v. Henry to arbitrate. 690 (Tex.App.—San ton S.W.3d at has court ‍‌​‌‌​‌​​​​‌‌​‌‌​‌​​​​‌​​​‌​‌‌​‌​​‌‌‌​‌‌‌‌‌​​‌​‌​‍also held An dism’d). that, io pet. In the event language where employer employ it is right, exercised indicates that on parties, ee retained the to force argument no con times, At all on issue. Webster re- tract was formed is merit. Id. without state, and, employment Light 8. Texas is an at will v. Cel contract arbitrate. Centel case, Tex., subject exceptions not relevant this lular Co. 1994) ("...at employment employment pre is terminable at time ei will does not cause, party, ther or with without absent an clude the formation of other contracts be express agreement contrary. employer employee. to the tween At Fed. Ex will Dutschmann, press Corp. employees may employers contract with their (Tex. 1993); except which would Schroeder Texas Iron matter those limit Works, (Tex.1991). ability employer either Inc. 813 S.W.2d employment (Empha employ The fact that Webster was an at will terminate at will.” ee, however, legitimacy original.)) does not affect the sis in *12 it is an affirmative de case, the enforced because present In the the Texas Labor unavailable under fense parties “mutual- agreement reads the adduced he maintained. Webster Code as ly agree and contract” to arbitrate.9 An precedеnt nor to neither evidence relevant objective review of the record before us agreement is show that the unconscionable in this shows that the case were as claimed. Tex.Civ.Prac. &Rem.Code Ann. obligated they at time execut- mutually the (Vernon Emerald Supp.2001); § 171.022 agreement. ed Davidson (Tex. Peel, 920 Tex. v. S.W.2d promised litigation to in favor of relinquish (an 1991, writ.) no arbitra promised the arbitration and Webster if is invalid unconsciona tion promises provided These mutual same. ble); v. Ai Employers’ American Ins. Co. necessary to fulfill the consideration ken, (Tex.App S.W.2d . —Fort mutuality obligation requirement, and a (there writ) nothing Worth no valid to was formed arbitrate per se about an arbitration unconscionable parties. between party claiming and the unconscio- contract it). prove nability has the burden Web arguments Webster’s argument that the contract is illuso ster’s a valid Because Davidson established ar- ry lacks has been addressed. mutuality agreement, bitration Webster had the bur- argument regarding His the absence den show that the claim fell outside only the addressed interstate commerce Inc., agreement. Prudential Sec. FAA. did not applicability of the Webster Co., 900; D. S.W.2d at Wilson Constr. bel applicability address the the TGAA at Although deny S.W.2d 394. he did not Finally, contention that ow.10 Webster’s the agreement existence of to arbi- public unavаil policy arbitration violates trate, Webster refused to arbitrate and ing. public policy “The of both our state thereby jurisdic- the trial invoked court’s agree governments and federal favors compel. tion to hear the motion Tex. disputes legal through ments resolve Ann. CivPRAc. & Rem.Code procedures.” voluntary such settlement 171.021(a)(Vernon § Supp.2001). None of 268; & Anglin, 842 see Cantella arguments his trial court addressed Co., at 944. or met his burden to show that the claim agreement. fell outside the None mandat- CONCLUSION ed agreement. revocation of I established a would hold Davidson Nothing in the in this case estab- under record arbitration agreement valid that the was has over- lishes TGAA and that Webster neither defense, ar- pled presumption favoring an affirmative and Web- strong as come the nor authority holding that the TGAA established presented ster no bitration under grounds for revocation of the the arbitration should be claim, controversy under the Mutuality obligation requisite in 9. is a statute, of a contract. Tex. Gas Util. Co. v. formation or the state "whichever shall FAA Barrett, agree- have the broadest effect." Under parties must mutual as case, communicate their then, question of the ment in this Villarreal, to each other. Garcia sent properly applicable one for statute was (Tex.Civ.App. Corpus Sons, Wiley — generally John arbitrator. See 1971, writ). Christi Livingston, 84 S.Ct. 376 U.S. Inc. 898(1964). 909, 11 L.Ed.2d agreement, Webster and the arbitration 10. agreed arbitrability Davidson arbitrate Inc., 900; Prudential Sec. 909 S.W.2d at

D. Wilson Constr. S.W.2d at

Accordingly, would find that the trial

court denying erred Davidson’s motion *13 arbitration and to stay proceed

ings. petition deny would for writ of

mandamus and reverse the trial court’s

order with that the trial court instructions

(1) order arbitration Webster’s claims (2) Davidson,

against stay Webster’s pending

civil action in accor

dance their with

HARLINGEN IRRIGATION DISTRICT

CAMERON COUNTY NO.

Appellant,

CAPROCK COMMUNICATIONS

CORP., Appellee.

No. 13-99-396-CV. Texas, Appeals

Court

Corpus Christi. 31, 2001.

May

Rehearing July Overruled

Case Details

Case Name: J.M. Davidson, Inc. v. Webster
Court Name: Court of Appeals of Texas
Date Published: Jul 5, 2001
Citation: 49 S.W.3d 507
Docket Number: 13-00-626-CV
Court Abbreviation: Tex. App.
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