Nuts! No arbitration.

In an unusually nutty case, the parties’ arbitration clause provided:

All disputes, claims, or controversies arising out of or relating to this Agreement, or the breach thereof, except as to the quality of the product delivered, shall be settled solely by arbitration held in Dallas, Texas, in accordance with the rules then obtaining of the American Arbitration Association, and judgment upon any award may be entered in any court having jurisdiction thereof.

(emphasis added). The plaintiff’s allegations “[a]ll . . . concern whether the pecan pieces San Saba sold contained pecan weevil larvae so that they were not merchantable and were unfit for human consumption” – in other words, claims about “the quality of the produce delivered” within the meaning of the above carveout. The Fifth Court thus affirmed the trial court’s denial of a motion to compel arbitration. San Saba Pecan LP v. Give & Go Prepared Foods Corp., No. 05-19-00214-CV (Dec. 6, 2019) (mem. op.)