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Forced Arbitration - Questions Arbitrator’s award in disregard of the law
Wednesday, 16 May 2007

Court Affirms Award Despite Objections by Prevailing Homeowner
A Texas appellate court affirmed a $29,500 arbitration award for a homeowner against a roofing contractor, upholding an arbitration provision in the parties’ contract and denying the homeowner’s efforts to vacate the award as too low. Teel v. Beldon Roofing & Remodeling Co., No. 04-06-00231-CV (Texas Ct. App., 4th Dist.)...Teel sued Beldon Roofing and Remodeling for breach of contract and breach of warranty, complaining that incomplete roof repairs led to water intrusion and mold contamination in her home. Beldon moved to stay and compel arbitration, citing the arbitration provision in the parties’ roofing contract, which expressly incorporated the Federal Arbitration Act. That motion was granted.

Court Affirms Award Despite Objections by Prevailing Homeowner
Date: 10 May 2007
Related Document: Opinion - MOL-0705-11 (PDF format)
 
SAN ANTONIO, Texas — A Texas appellate court affirmed a $29,500 arbitration award for a homeowner against a roofing contractor, upholding an arbitration provision in the parties’ contract and denying the homeowner’s efforts to vacate the award as too low. Teel v. Beldon Roofing & Remodeling Co., No. 04-06-00231-CV (Texas Ct. App., 4th Dist.).

The 4th District Court of Appeals said that while homeowner Jackie Teel was correct in arguing that there was no interstate commerce basis for applying the Federal Arbitration Act, nothing prevented the parties from referencing that act in their contract.

Teel sued Beldon Roofing and Remodeling for breach of contract and breach of warranty, complaining that incomplete roof repairs led to water intrusion and mold contamination in her home. Beldon moved to stay and compel arbitration, citing the arbitration provision in the parties’ roofing contract, which expressly incorporated the Federal Arbitration Act. That motion was granted.

An arbitrator awarded Teel $29,500, and later amended the award to add prejudgment interest at an annual rate of 6 percent. Teel moved in Bexar County’s 225th Judicial District Court to vacate the award and, when that motion was denied, appealed.

Teel argued on appeal that the interstate commerce was a jurisdictional prerequisite when applying the FAA and, alternatively, that the arbitrator’s award was in manifest disregard of the law.

Court of Appeals rejected Teel’s interstate commerce argument, citing case law in which courts upheld choice of law provisions under similar circumstances.

The court also found that Teel failed to cite any rule or statute ignored by the arbitrator to support her argument that the arbitrator exhibited manifest disregard of the law.

Robert W. Loree and Christopher D. Below of Loree, Hernandez & Lipscomb in San Antonio represented Jackie Teel.

Daniel O. Kustoff and Melanie H. Phipps of Lang & Kustoff in San Antonio represented Beldon Roofing & Remodeling Co.

 
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