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Finding it lacked appellate jurisdiction to decide whether a trial court was correct to vacate an arbitration award and order an arbitral rehearing, a Texas appellate court held that an order mandating an arbitral rehearing is not appealable because the issue is not ripe for review.
In Thrivent Financial for Lutherans v. Brock, Nos. 01-07-00356-CV, 01-07-00484-CV, 2007 WL 3227620 (Tex. App. Nov. 01, 2007), a dispute arose between Brock and Thrivent over Thrivent’s alleged nonpayment of disability claims. The trial court ordered the parties to arbitrate their dispute. The arbitrator ruled for Thrivent and Thrivent moved to confirm the arbitrator’s award.
Brock opposed the motion, asserting the award was obtained “by fraud, corruption, or other undue means.” The trial court denied Thrivent’s motion to confirm, vacated the arbitration award, and directed a hearing before a new arbitrator. Thrivent appealed.
The Court held that an order vacating an award and ordering a rehearing is not appealable under the Texas Arbitration Act (TAA). TAA Section 171.098(a)(5) allows an appeal of an order vacating an award when no rehearing is directed. However, none of the statute’s provisions permits an appeal when a court orders a rehearing.
Additionally, orders directing a rehearing lack the finality element, unlike the grounds for appeal in TAA Section 171.098. Because an order directing a rehearing signifies the continuation of the arbitration process, the dispute is not ripe for appeal.
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