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An arbitrator who defers to the factual findings of a court-appointed special master does not commit a gross mistake, a state court in Texas held.
In Chambers v. O’Quinn, No. 01-05-00635-CV, 2006 WL 2974318 (Tex. Ct. App. Oct. 19, 2006), Chambers brought an action against O’Quinn, claiming that O’Quinn committed legal malpractice. The trial court compelled arbitration of the dispute, and the arbitrator found in O’Quinn’s favor.
Chambers then petitioned the Court to vacate the award, arguing that there was no valid agreement to arbitrate between the parties; that the arbitrator incorrectly implied Texas state law; and that the arbitrator committed “gross mistakes.”
However, the Court disagreed with all of Chambers’ arguments and confirmed the arbitration award. First, the Court refused to consider whether a valid agreement to arbitrate existed because the trial court had already decided that issue when it considered the motion to compel arbitration.
Second, even if the arbitrator was mistaken is his application of Texas law, mere mistake of fact or law is not grounds for vacating an arbitration award. Courts vacating an arbitration award must do so on statutory, common law or public policy grounds. See CVN Group, Inc. v. Delgado, 95 S.W.3d 234, 237-39 (Tex. 2002). This challenge did not fall under any of these categories.
Finally, the Court held that the arbitrator did not make a “gross mistake.” Chambers argued that the arbitrator failed address some of his malpractice claims. However, the arbitrator’s award showed that he did consider all of the claims. The arbitrator determined that all of Chambers’ claims were precluded by a Special Master’s Report.
The Special Master, who was appointed by a federal district court to conduct an independent investigation, determined that O’Quinn’s representation was fair, reasonable, and in the best interests of Chambers. The Court held that the arbitrator did not commit a gross mistake be deferring to these findings.
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