Kenwood Communications Corporation, Kenwood Americas Corporation, and Gary Cochran v. PR-900, L.L.C.--Appeal from 150th Judicial District Court of Bexar County

MEMORANDUM OPINION
No. 04-02-00269-CV
KENWOOD COMMUNICATIONS CORPORATION,
Kenwood Americas Corporation, and Gary Cochran,
Appellants
v.
PR-900, L.L.C.,
Appellee

From the 150th Judicial District Court, Bexar County, Texas
Trial Court No. 2001-CI-05587
Honorable Phylis J. Speedlin, Judge Presiding (1)

Opinion by: Sarah B. Duncan, Justice

Sitting: Catherine Stone, Justice

Sarah B. Duncan, Justice

Sandee Bryan Marion, Justice

Delivered and Filed: March 12, 2002

DISMISSED FOR LACK OF JURISDICTION

Kenwood Communications Corporation, Kenwood Americas Corporation, and Gary Cochran (collectively "Kenwood") filed this accelerated appeal from the trial court's order denying their motion to compel arbitration of PR-900, L.L.C.'s claims against them. We dismiss the appeal for lack of jurisdiction because the arbitration clause at issue is governed by the Federal Arbitration Act.

A trial court's order denying arbitration under the Texas Arbitration Act is subject to interlocutory appeal. Tex. Civ. Prac. & Rem. Code Ann. 171.098(a) (Vernon Supp. 2002). However, relief from a denial of arbitration sought under the Federal Arbitration Act must be pursued by mandamus. EZ Pawn Corp. v. Mancias, 934 S.W.2d 87, 91 (Tex. 1996). The arbitration clause at issue in this case does not specifically invoke either the Texas Arbitration Act or the Federal Arbitration Act; and the trial court made no ruling on which Act applies.

The Federal Arbitration Act governs a written arbitration clause in "a contract evidencing a transaction involving commerce." 9 U.S.C.A. 2. This provision extends to any transaction affecting commerce and is coextensive with the reach of the Commerce Clause of the United States Constitution. Allied-Bruce Terminix Co. v. Dobson, 513 U.S. 265, 273-277 (1995). A contract "evidenc[es] a transaction involving commerce" if it in fact turns out to involve interstate commerce. Id. 513 U.S. at 277-281.

The arbitration clause in this case is in an agreement allegedly entered into between Kenwood Communications Corporation, a California corporation headquartered in California, and PR-900, a Nevada limited liability corporation with its principal place of business in Texas. Under the parties' agreement, PR-900's product orders would be processed by Kenwood in California; and the product would be shipped from Kenwood's California warehouse to PR-900 in Texas. The arbitration clause is therefore in "a contract evidencing a transaction involving commerce" governed by the Federal Arbitration Act, and the trial court's order denying arbitration is not subject to interlocutory appeal. 9 U.S.C.A. 2; EZ Pawn, 934 S.W.2d at 91. We therefore dismiss this interlocutory appeal for lack of jurisdiction.

Sarah B. Duncan, Justice

Publish

1. This interlocutory appeal arises out of a case pending in the 150th Judicial District Court, Bexar County, Texas, in which the Honorable Janet Littlejohn is the presiding Judge; and the caption on the challenged order indicates it is an order of that court. However, the Honorable Frank Montalvo, presiding judge of the 288th Judicial District Court, Bexar County, Texas, conducted the hearing and ruled on the motion that is the subject of this proceeding; and the order denying the motion was signed by the Honorable Phylis J. Speedlin, presiding judge of the 408th Judicial District Court, Bexar County, Texas.