On Petition for Writ of Mandamus
The instant mandamus proceeding arose from an arbitration agreement governed by the Federal Arbitration Act (FAA). The parties entered into a contract for interment rights and services. The contract obligated the parties to arbitrate that dispute over the care and maintenance of the cemetery. The arbitration agreement provided that an arbitrator would either be selected by mutual agreement of the parties or appointed by the American Arbitration Association (AAA). The parties failed to agree to an arbitrator and the trial court appointed an arbitrator without allowing a reasonable opportunity to procure an appointment by the AAA. The Texas Supreme Court noted that because the contract allowed for the appointment of an arbitrator without the involvement of the AAA, the contract provided that, although the parties might use AAA rules to govern their dispute, no filing with the AAA was required when the parties mutually agree. However, if the parties could not agree, then either party might apply to had an arbitrator appointed through the AAA’s procedures. The court determined that the contract was not ambiguous on that point. If the parties could not agree on an arbitrator, the contract required that they use the AAA to appoint the arbitrator. Accordingly, the court concluded that the trial court abused its discretion and conditionally granted the petition for writ of mandamus.