TX STATETexas Supreme Court
2002

CVN Group, Inc. v. Delgado

95 S.W.3d 234Texas Supreme Court • Decided 2002Enforced
FLAGSHIPLien RightsDispute ResolutionCited 255 times

HOLDING

CVN Group sued the Delgados over a home construction dispute and won an arbitration award that included a valid mechanic's lien. The Delgados challenged the lien in court, arguing the arbitrator lacked authority to decide lien validity. Texas Supreme Court ruled that parties can arbitrate mechanic's lien disputes, and courts cannot overturn arbitration awards on lien validity unless they violate fundamental public policy. This means your arbitration clause can cover lien disputes, and you don't have to litigate lien validity separately.

KEY FINDINGS

Lien Rights

Include arbitration clauses in your contracts—they can cover mechanic's lien disputes, not just payment disagreements

Dispute Resolution

If you arbitrate a lien claim and win, courts will enforce the award unless it violates basic public policy; don't expect judges to second-guess the arbitrator's decision

FULL COURT OPINION