HPD LLC v. TETRA Techs., Inc. (Majority)Annotate this Case
HPD, LLC and TETRA Technologies Inc. entered into an agreement for HPD to supply equipment to be used in TETRA's future facility. The contract contained a provision for binding arbitration. After the construction of the plant was completed, TETRA filed a complaint against HPD, alleging that the equipment designed by HPD did not perform to expectations. TETRA also sought a declaratory judgment that the contract and the embedded arbitration clause were illegal and thus void because HPD performed engineering services without obtaining a certificate of authorization as allegedly required by Ark. Code Ann. 17-30-303. HPD moved to compel arbitration. After a hearing, the circuit court rule in TETRA's favor that it would determine the threshold issues of arbitrability before deciding whether the case must proceed to arbitration. The Supreme Court reversed and remanded for the entry of an order compelling arbitration, holding that the circuit court erred by not honoring the parties' clear expression of intent to arbitrate the existing disputes.