No Arbitrability Agreement as to Third Parties

The Stantons sued a construction contractor who did work on a commercial property near their home. The contractor sought to compel arbitration, arguing that their claim implicated an arbitration agreement in its contract with the relevant subcontractor. But the Stantons countered with evidence that the excavation work at issue was performed under a separate contract, directly with the property owners.

The trial court denied the motion to compel arbitration. The Fifth Court affirmed. It noted the principle that “a bilateral agreement to arbitrate under the AAA rules constitutes clear and unmistakable evidence of the parties’ intent to delegate the issue of arbitrability to the arbitrator.” But that said, “[t]he subcontract between [the general] and [the sub] is not a bilateral contract with the Stantons.” Therefore, the trial court retained the authority to determine arbitrability. Scott + Reid General Contractors, Inc. v. Stanton, No. 05-22-00400-CV (Oct. 7, 2022) (mem. op.).