Chapter 25-2 Compelling Arbitration

• Jurisdiction: United States

25-2 Compelling Arbitration

The procedure for compelling arbitration is similar under both the FAA and TAA. If suit is brought and it is referable to arbitration, a party may compel arbitration with a motion (or application) to compel arbitration.¹⁷ Both the FAA¹⁸ and TAA¹⁹ require the court to stay trial court proceedings that are subject to an arbitration agreement.

Where a lawsuit subject to an arbitration agreement has not already been filed, suit may be filed seeking an order to compel arbitration.²⁰

The application to compel arbitration should:

• Show the jurisdiction of the court;
• Have attached a copy of the agreement to arbitrate;
• Define the issue subject to arbitration between the parties under the agreement;
• Specify the status of the arbitration before the arbitrators; and
• Show the need for the court order sought by the applicant.²¹

When a trial court erroneously denies a party's motion to compel arbitration, mandamus is available to correct the error in suits governed by the FAA.²² Mandamus ordinarily is unnecessary in suits governed by the TAA, as the TAA provides a right to immediate interlocutory appeal.²³

A court may also seek Texas trial court assistance during a pending arbitration to enforce an arbitrator's order.²⁴

--------

Notes:

^[17] 9 U.S.C. § 3 (providing that, upon application, any suit involving an issue referable to arbitration will be stayed); Tex. Civ. Prac. & Rem. Code Ann. § 171.021 (providing that the court shall order arbitration upon an application showing an agreement to arbitrate and a party's refusal to arbitrate).

^[18] 9 U.S.C. § 3.

^[19] Tex. Civ. Prac. & Rem. Code Ann. §§ 171.021(c), 171.025.

^[20] 9 U.S.C. § 4 ("A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate . . . may petition any United States district court . . . for an order directing that such arbitration proceed in the manner provided for in such agreement."); Tex. Civ. Prac. & Rem. Code Ann. §§ 171.081-171.085.

^[21] Tex. Civ. Prac. & Rem. Code Ann. § 171.085.

^[22] In re First Merit Bank, N.A., 52 S.W.3d 749, 753 (Tex. 2001); EZPawn Corp. v. Mancias, 934 S.W.2d 87, 88 (Tex. 1996).

^[23] Tex. Civ. Prac. & Rem. Code Ann. § 171.098(a); In re AIU, 148 S.W.3d 109, 115 (Tex. 2004) (recognizing the distinction between the use of mandamus and interlocutory appeal for denied motions to compel arbitration depending on whether FAA or TAA applies).

^[24] Tex. Civ. Prac. & Rem. Code Ann. § 171.086.