International Energy Ventures Management, LLC v. United Energy Group, Ltd., No. 20-20221 (5th Cir. 2021)Annotate this Case
The Fifth Circuit reversed and remanded with instructions to deny IEVM's motion to compel arbitration and to enter judgment for UEG. The court concluded that the parties failed to contract around the general rule that courts resolve litigation-conduct waivers. Therefore, the arbitrators exceeded their authority in resolving the issue here.
Applying the substantial invocation analysis, the court concluded that IEVM substantially invoked the judicial process to UEG's detriment. In this case, IEVM sued UEG in state court without saying anything about arbitration; demanded a jury trial and paid the required fee; filed a motion to remand the action to state court and appealed the district court's denial of that motion; vigorously defended the existence of personal jurisdiction in Texas and appealed the district court's personal jurisdiction dismissal; and sought rehearing en banc after this court affirmed the district court's removal and jurisdictional holdings. Furthermore, UEG has made the requisite showing of prejudice where, among other things, IEVM's persistent pursuit of litigation required UEG to defend its interests, and UEG incurred significant fees and costs.