Hoskins v. Hoskins (Opinion)Annotate this Case
The parties were litigating a dispute involving an estate and family trusts when a family corporation filed for bankruptcy. The parties signed an agreement with a provision stating that they would attempt to settle any disputes by mediation and, if unsuccessful, by binding arbitration. The bankruptcy court’s order approving the settlement contained a permanent injunction prohibiting the parties from suing each other “on subjects pertaining to the subject matter of this litigation” without first obtaining its permission to do so. Later, that court denied Leonard permission to file suit and ordered the parties to comply with the agreement. The parties signed an arbitration agreement and “agreed to a resolution through arbitration pursuant to the provisions of the Texas General Arbitration Act.” Leonard subsequently filed a Complaint in Arbitration, alleging fraudulent conveyance and breach of fiduciary duties. After a hearing, the arbitrator dismissed most of the claims, stating that his ruling was based both on the statute of limitations and lack of standing Other parties sought to confirm the arbitration award; Leonard moved to vacate, alleging the arbitrator manifestly disregarded the law. Manifest disregard is not a ground for vacatur under the Act. The court of appeals held, and the Texas Supreme Court affirmed, that the TAA’s enumerated vacatur grounds (TEX. CIV. PRAC. & REM. CODE 171.087) are exclusive.