Stay awhile? — UPDATED

March 2, 2020

Section 171.025 of the Civil Practice & Remedies Code says: “The court shall stay a proceeding that involves an issue subject to arbitration if an order for arbitration or an application for that order is made under this subchapter.” The dispute in In re: Baby Dolls Topless Saloon involved a mandamus petition from a defendant’s perceived inability to obtain an order implementing this stay, during its interlocutory appeal from denial of its motion to compel arbitration.

The panel majority denied the petition, finding  that the issue of arbitrability “has been briefed in the interlocutory appeal and will be decided by the panel of justices assigned to decide that appeal, which is just as the legislature intended when it enacted section 51.016 and provided for an interlocutory appeal of an order denying a motion to compel arbitration. Because we follow the rule of law, we, as one panel of this Court, will not depart from this Court’s prior holding that mandamus will not issue when the legislature has expressly provided an adequate remedy by appeal.”

A dissent would have granted a stay as part of resolution of the mandamus petition, noting: “While our own statute and rules appear to compel the same result by dictating a stay of the overlapping proceedings of whatever court is first asked, we have not  done so here. Accordingly, relator has properly brought the issue before us for mandamus relief that should be available under long recognized mandamus standards and without the need of further machination or a fifth request for stay.” No. 05-20-00015-CV (Feb. 24, 2020) (mem. op.)