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Federal Arbitration Act: Appointment In Fraud Case Upheld

Friday, June, 10, 2011


Under the Federal Arbitration Act, parties in dispute can elect to take their case to arbitration instead of to court.  When a case goes to arbitration, an arbitration attorney will issue a decision about which party prevails in the case and what the financial settlement will be.  At issue in a recent Texas Supreme Court case was the appointment of a particular arbitration attorney.

 

Texas Supreme Court Upholds Federal Arbitration Act Appointment

 

The case at issue involved a dispute between CMH Homes and Adam Perez, who had purchased a home from the company.  The case was determined to be governed by the Federal Arbitration Act, which meant that an arbitration attorney needed to be appointed to hear the two sides and issue a ruling.  The arbitration attorney eventually appointed was a controversial choice and the issue of his appointment was brought to court.

 

Originally, the Fourth District Appellate Court in Texas declined to review the appointment, claiming they lacked jurisdiction to do so.  That finding was overturned by the Supreme Court of Texas.  According to Justice Wainwright, "The interests of promoting the policy considerations of rigorous and expedited enforcement of arbitration agreements would not be served by letting a technicality rule the day."

Find an Arbitration Attorney in the National Arbitration Directory.