Texas Court of Appeals Holds That the Effect of a Failure to Meet a Specific Contractual Deadline for Arbitration is a Procedural Question for the Arbitrator, Not the Trial Court

Tilson Home Corp. v. Zepeda, No. 14-16-00075-CV, 2016 Tex. App. LEXIS 12022 (Tex. App. Nov. 8, 2016)

The Court of Appeals of Texas has held that an arbitrator—not a trial court—must determine whether a prerequisite to the obligation to arbitrate has been met. Thus, when faced with the procedural question of whether an arbitration demand was timely filed, Texas trial courts must compel arbitration, leaving the question to the arbitrator. 

In Tilson Home Corp., Jorge and Lisa Zepeda hired Tilson to build a home on their property.  The contract’s arbitration provision stated:

Any dispute or claim which arise[s] from or relates to this Agreement, the Work and/or the Home will be barred unless the claim is filed with the [AAA] by Owner or Contractor within two (2) years and one (1) day from the date the cause of action accrues. Continue reading “Texas Court of Appeals Holds That the Effect of a Failure to Meet a Specific Contractual Deadline for Arbitration is a Procedural Question for the Arbitrator, Not the Trial Court”