In re SKE Support Services, Inc. f/k/a Baker Support Services, Inc.--Appeal from 25th Judicial District Court of Guadalupe County

Opinion by: Alma L. L pez, Chief Justice

Sitting: Alma L. L pez, Chief Justice

Karen Angelini, Justice

Phylis J. Speedlin, Justice

Delivered and Filed: April 7, 2004

PETITION FOR WRIT OF MANDAMUS CONDITIONALLY GRANTED IN PART

Relator filed a petition for writ of mandamus asserting that: (1) the trial court abused its discretion in granting the real party in interest's motion to compel arbitration; and (2) in the alternative, the trial court abused its discretion in ordering the parties to arbitrate their disputes in accordance with the Texas Civil Practice and Remedies Code. This court is of the opinion that relator is not entitled to the relief sought with regard to the trial court's granting of the motion to compel arbitration, and the petition is denied with regard to that issue. See Tex. R. App. P. 52.8(a). On March 17, 2004, we requested the real party in interest to file a response with regard to the alternative issue, i.e., whether the trial court abused its discretion by ordering the parties to arbitrate their disputes in accordance with the Texas Civil Practice and Remedies Code. The real party in interest filed a response, conceding that the contractual arbitration provisions under which arbitration has been compelled specifically provide that any arbitration shall be conducted pursuant to the Federal Arbitration Act ("FAA"). In the response, the real party in interest agrees that mandamus relief should be granted as to the alternative issue.

The FAA applies in the underlying case because the dispute concerns a contract evidencing a transaction involving commerce. See In re FirstMerit Bank, N.A., 52 S.W.3d 749, 754 (Tex. 2001). Specifically, the dispute concerns a contract between two Texas Corporations to provide maintenance services on vehicles at various naval stations in Florida. The Escrow Agreement acknowledges that the FAA applies, stating, "The Federal Arbitration Act shall apply to the construction, interpretation, and enforcement of this arbitration provision." Accordingly, mandamus relief is conditionally granted with regard to the portion of the order referencing the Texas Civil Practice and Remedies Code. See In re Louisiana Pacific Corp., 972 S.W.2d 63, 65 (Tex. 1998) (granting mandamus relief where trial court's order was inconsistent with contract allowing each party to select an arbitrator of its choice). The writ will only issue if Judge Strauss fails to modify his order to delete the reference to the Civil Practice and Remedies Code within ten days from the date of our opinion and order.

Alma L. L pez, Chief Justice

1. This proceeding arises out of Cause No. 01-1871-CV, styled SKE Support Services, Inc. f/k/a Baker Support Services v. Trans Met, Inc., pending in the 25th Judicial District Court, Guadalupe County, Texas, the Honorable Gus J. Strauss presiding.