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Stanley Roy Hilton v. Korrect General Contracting, LLC

Citation: Not availableDocket: 02-20-00337-CV

Court: Court of Appeals of Texas; October 7, 2021; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this appellate case, the Court of Appeals Second Appellate District of Texas reviewed a lower court's judgment confirming an arbitration award in favor of Korrect General Contracting, LLC, and denying Stanley Roy Hilton's counterclaims and motion for summary judgment. The dispute arose from a construction contract following damage to Hilton's property, which led to arbitration under agreed fast track rules. Hilton's appeal raised concerns about the arbitration process, the trial court's handling of his counterclaims, and the sufficiency of evidence for the arbitration award. The court found that Hilton's challenge to the arbitration award was untimely under both the Federal Arbitration Act (FAA) and the Texas Arbitration Act (TAA), resulting in a forfeiture of his right to judicial review. The court also addressed Hilton's argument regarding the lack of a motion to compel arbitration, concluding that neither the FAA nor the TAA required such a motion for jurisdiction. Furthermore, Hilton's claims were barred by res judicata, as determined in the arbitration proceedings. The appellate court affirmed the trial court's confirmation of the arbitration award but reversed and remanded the portion of the judgment ordering Hilton to take nothing on his claims, as the trial court improperly rendered a take-nothing judgment without sufficient evidence or a dispositive motion on the res judicata defense.

Legal Issues Addressed

Confirmation of Arbitration Awards under Federal and Texas Arbitration Acts

Application: The trial court was required to confirm the arbitration award as Hilton's challenge to the award was untimely under the FAA and TAA, resulting in forfeiture of his right to judicial review.

Reasoning: The trial court was thus required to confirm the arbitration award in accordance with 9 U.S.C.A. § 9 and Tex. Civ. Prac. Rem. Code Ann. § 171.087, which mandate confirmation unless valid grounds for vacatur exist.

Jurisdiction and Motion to Compel Arbitration

Application: The arbitrator had jurisdiction based on the parties' agreement to arbitrate and the absence of a requirement for a motion to compel arbitration under the FAA and TAA.

Reasoning: However, neither the FAA nor the TAA establish such a motion as jurisdictional or a prerequisite for confirming an arbitration award.

Res Judicata in Arbitration Proceedings

Application: Hilton's claims were barred by res judicata, as previously determined in arbitration, which denied his defenses and counterclaims.

Reasoning: Korrect contended that Hilton's defenses were barred by res judicata and had been waived, leading to Korrect's amended motion to confirm the arbitration award.

Summary Judgment Requirements

Application: The trial court erred in rendering a take-nothing judgment on Hilton's counterclaims without evidence or a motion for summary judgment on res judicata.

Reasoning: The ruling emphasized that a party cannot receive a judgment on claims not addressed in a summary judgment motion.