Texas Supreme Court Remands FAA Section 1 Arbitration Case After New U.S. High Court Opinion
Updated
Updated · Bloomberg Law · Jun 29
Texas Supreme Court Remands FAA Section 1 Arbitration Case After New U.S. High Court Opinion
2 articles · Updated · Bloomberg Law · Jun 29
Summary
The Texas Supreme Court granted an environmental specialist’s petition for review and sent his arbitration dispute back for reconsideration.
The remand followed a new U.S. Supreme Court opinion interpreting Section 1 of the Federal Arbitration Act, which exempts some workers engaged in interstate commerce from arbitration mandates.
Energy Transfer LP, Enable Midstream Partners LP and Enable GP LLC had sought to compel arbitration, while the worker argued his employment contract falls within that Section 1 exemption.
The ruling does not resolve whether arbitration applies, but requires lower courts to reassess the employers’ motion under the new federal precedent.