HOUSTON - The 14th Court of Appeals recently affirmed a ruling denying Magnolia Hi-Fi’s motion to compel arbitration in a breach of contract lawsuit.
Samir Gulati sued Magnolia alleging the products he purchased from the store were defective, and that the company was given an opportunity to remedy the defects but it had failed to do so.
According to the 14th Court’s Feb. 27 opinion, Magnolia moved to compel arbitration based on three separate agreements, one of which Gulati added the following handwritten notation: “I do not agree to waive my right to sue.”
As for the two remaining agreements, Gulati presented many arguments, the opinion states.
“He argued that any agreement he had with Best Buy was not an agreement with Magnolia, a separate entity,” the opinion states. “He also argued that the affidavit offered in support of the agreements was deficient. He objected, for instance, that the affidavit lacked a jurat, which was statutorily required. He objected that the affiant lacked personal knowledge. He also objected that the exhibits attached to the affidavit were not properly authenticated and were inadmissible as hearsay.”
According to the opinion, the trial court denied the motion to compel and overruled Gulati’s objection that the affiant lacked personal knowledge. The court, however, sustained Gulati’s objections that the affidavit lacked a jurat and that the exhibits attached to the affidavit were not properly authenticated and were inadmissible as hearsay. Pursuant to the rulings, the trial court struck the entirety of the affidavit and all of its exhibits.
“Because Magnolia did not challenge the trial court’s hearsay ruling or otherwise show that the evidence was admissible under a hearsay exception, Gulati responds that Magnolia has waived such arguments for purposes of this appeal,” the opinion states. “We agree with Gulati. In effect, the trial court’s ruling striking the affidavit and exhibits must stand. And without that evidence, Magnolia cannot establish the existence of a binding arbitration agreement with Gulati.
“We must accordingly conclude that the trial court did not abuse its discretion by denying Magnolia’s motion to compel arbitration. The trial court’s order denying the motion to compel arbitration is affirmed.”
Appeals case No. 14-23-00240-CV