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Timeliness of arbitration demand is for an arbitrator to decide, not a trial court, justices find

SOUTHEAST TEXAS RECORD

Sunday, November 24, 2024

Timeliness of arbitration demand is for an arbitrator to decide, not a trial court, justices find

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HOUSTON - Today, the First Court of Appeals reversed a trial court that found an arbitration request was barred because the defendants had failed to timely invoke arbitration by the deadline in the arbitration agreement.

On July 31, 2020, Tomas Sanchez filed suit against Lupe Holdings and Tres Habaneros, alleging that two years earlier he suffered an on-the-job injury to his foot while he was working as a dishwasher at a restaurant.

Court records show the defendants moved for arbitration and that on June 9, 2021, the trial court denied their motion, finding that the right to arbitrate the dispute is barred because the employer did not timely invoke the arbitration clause. 

On appeal, the defendants argued that the trial court abused its discretion in denying their motion because the dispute on whether their arbitration demand is barred is a matter of procedural arbitrability that should be decided by an arbitrator, not by the courts. 

 

“Because we agree with Appellants, we reverse and remand,” the First Court’s opinion states. “We reverse the trial court’s June 9, 2021 order denying Appellants’ motion to stay judicial proceedings and compel arbitration. We remand the case to the trial court for further proceedings consistent with this opinion.”

Appeals case No. 01-21-00351-CV 

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