HOUSTON — The First Court of Appeals has reversed a ruling vacating an arbitration award of more than $124,000 in attorney’s fees to Oppidan Homes.
Court records show James Timothy Work purchased a new home from Oppidan. The sales contract contained an arbitration clause.
In August 2021, Work sued Oppidan claiming there were construction defects in the home, and Oppidan moved to compel arbitration. Before the trial court ruled on Oppidan’s motion, Work filed a demand for arbitration with the American Arbitration Association, and the AAA appointed an attorney as the sole arbitrator.
According to the appellate briefs, on Oct. 21, 2024, the arbitrator issued an award, denying all of Work’s claims and awarding Oppidan attorney fees of $124,152 and $587 in costs. The parties were ordered to bear their own costs for the AAA and arbitrator fees.
On Jan. 20, 2025, Work filed an application to vacate the arbitration award on grounds of evident partiality, complete irrationality, manifest disregard of the law, and corruption.
After a hearing, the trial court granted Work’s application to vacate the arbitration award and denied Oppidan’s application to confirm, leading the builder to appeal.
“The court correctly granted vacatur of the arbitration award on evident partiality grounds,” Work states in his brief. “Despite the continuing obligation to disclose, the arbitrator did not disclose his subsequent appointment as arbitrator in another proceeding in which counsel for Appellant Oppidan was an attorney. A failure to disclose when there is an obligation to do so is legally sufficient evidence of evident partiality.”
The First Court, however, concluded on Aug. 31 that Oppidan was entitled to confirmation of the award.
“Because Work did not meet his burden to show that (the arbitrator) acted with evident partiality, and complete irrationality and manifest disregard of the law are not viable grounds for vacating an arbitration award under the the (Federal Arbitration Act), we hold the trial court erred in granting Work’s application to vacate the arbitration award,” the opinion states.
“We reverse the trial court’s order granting Work’s application to vacate the award and render judgment confirming the award.”
Appeals case No. 01-25-00414-CV
