Crossmark, Inc. v. Hazar
124 S.W.3d 422 | Texas Court of Appeals, 5th District (Dallas) | 2004
What This Case Means for Subcontractors
Crossmark purchased a brokerage company from the Hazars and signed non-competition agreements with an arbitration clause. When Crossmark stopped making payments, the Hazars won an arbitration award. The court confirmed the award, rejecting Crossmark's arguments that it was unfair or violated public policy. The court did remove some attorney fee awards but upheld the core decision. This case shows courts strongly favor arbitration awards and won't overturn them easily.
Key Takeaways
- •Arbitration awards get strong court protection—judges rarely overturn them even if you think the decision was wrong, so arbitration clauses are binding and final
- •Non-compete agreements with acceleration clauses (where full payment becomes due immediately upon breach) are enforceable and not automatically considered unfair penalties
- •If you sign an arbitration clause, you cannot later ask a court to join other parties or expand the dispute—arbitration stays limited to the original parties and claims
Arbitration awards are entitled to great deference by the courts lest disappointed litigants seek to overturn every unfavorable arbitration award.
Frequently Asked Question
Can I get a court to overturn an arbitration award if I think the arbitrator made a mistake?
No, not easily. Courts give arbitration awards strong protection and will only overturn them in rare cases of serious misconduct or violation of public policy. If you signed an arbitration clause, you agreed to accept the arbitrator's decision as final, even if you disagree with it.
Related Cases
Intergen N v. v. Grina
A party cannot be compelled to arbitrate disputes unless it has agreed to do so; InterGen, a non-signatory to the arbitration agreements, is not bound by arbitration clauses in contracts signed by other parties.
Halliburton Energy Servs., Inc. v. Ironshore Specialty Ins. Co.
Ironshore, as Statoil's insurer, retained subrogation rights under the MSA arbitration clause because the explosion damage constituted a liability Statoil assumed, making the dispute arbitrable between Ironshore and Halliburton.
Hearthshire Braeswood Plaza Ltd. Partners v. Bill Kelly Co.
Trial court erred in denying arbitration where party resisting arbitration failed to present evidence supporting fraud claims; arbitration agreements are enforceable absent clear proof of fraud or unconscionability.
Hoover v. American Income Life Insurance
State statutory labor claims under California Labor Code cannot be compelled to arbitration, and AIL waived its right to arbitration through 15 months of litigation delay and prejudicial conduct.
Northwest Construction Co. v. Oak Partners, L.P.
Trial court properly denied motion to compel arbitration where contractor substantially invoked judicial process over 19 months through discovery, counterclaims, and summary judgment motions, causing opposing parties prejudice despite valid arbitration agreement.