Powell v. Gulf Coast Carriers, Inc.

Decision Date10 February 1994
Docket NumberNo. C14-93-00594-CV,C14-93-00594-CV
PartiesThomas A. POWELL and Billy L. Music, Appellants, v. GULF COAST CARRIERS, INC., Larry Strickland, Lynda Strickland, and Lance Strickland, Appellees. (14th Dist.)
CourtTexas Court of Appeals

Floyd J. Fernandez, Houston, for appellants.

James B. Eaton, Houston, for appellees.

Before ROBERTSON, CANNON and DRAUGHN, JJ.

OPINION

DRAUGHN, Justice.

This appeal is from a judgment confirming an arbitration award. Appellants contend on appeal that the evidence is factually insufficient to support the decision of the arbitration panel, and the judgment is against the great weight and preponderance of the evidence. Appellees filed a motion to dismiss the appeal, arguing that factual insufficiency of the evidence may not be reviewed on appeal of an arbitration award.

Appellants' suit was an attempt to enforce a judgment they had obtained against Gulf Carriers, Inc., a bankrupt trucking company. They sought to pierce the corporate veil and impose liability upon the individual appellees, alleging fraudulent conveyances had denuded the corporation of assets and forced it into bankruptcy. The trial court ordered arbitration and the parties consented to have all issues arbitrated. The trial court confirmed the arbitrators' award that appellants take nothing on all claims and causes of action against appellees.

Appellants brought their appeal pursuant to TEX.REV.CIV.STAT.ANN. art. 238-2(A)(6) (Vernon 1973), which provides that an appeal may be taken from a "judgment or decree entered pursuant to the provisions of the [Texas General Arbitration Act]." Arbitration awards may only be vacated in accordance with TEX.REV.CIV.STAT.ANN. art. 237 (Vernon 1973). Article 237 provides specific grounds for vacating an award: (1) the award was procured by corruption, fraud or other undue means; (2) there was evident partiality, misconduct or willful misbehavior by an arbitrator prejudicing the rights of a party; (3) the arbitrators exceeded their powers; (4) the arbitrators refused to postpone the hearing upon sufficient cause being shown, or refused to hear material evidence or otherwise conducted the hearings contrary to the provisions of the Act so as to prejudice substantially the rights of a party; and (5) there was no arbitration agreement, the issue was not adversely determined under Article 225 to stay the arbitration proceeding, and the party did not participate in the arbitration hearing without objection. Appellants have not raised any of these complaints.

In addition, under the common law of this state, the test for determining whether or not an arbitration award must be vacated is whether the award is "tainted with fraud, misconduct, or such gross mistake as would imply bad faith and failure to exercise honest judgment." Carpenter v. North River Ins. Co., 436 S.W.2d 549, 551 (Tex.Civ.App.-- Houston [14th Dist.] 1968, writ ref'd n.r.e.). Statutory arbitration is merely cumulative of the common law. L.H. Lacy Co. v. City of Lubbock, 559 S.W.2d 348, 351 (Tex.1977). Appellants have not alleged any common law grounds for vacating the award, and a complaint...

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9 cases
  • Blue Cross Blue Shield of Texas v. Juneau
    • United States
    • Texas Court of Appeals
    • July 24, 2003
    ...Gregory Gourmet Servs., Inc. v. Antone's Imp. Co., 927 S.W.2d 31, 33 (Tex.App.-Houston [1st Dist.] 1995, no writ); Powell v. Gulf Coast Carriers, Inc., 872 S.W.2d 22, 24 (Tex. App.-Houston [14th Dist.] 1994, no writ). The Act's provisions afforded Blue Cross a sufficient mechanism to vacate......
  • Xtria L.L.C. v. Intern. Ins. Alliance Inc.
    • United States
    • Texas Court of Appeals
    • May 15, 2009
    ...parties as to all matters of fact and law because the award has the effect of a judgment of a court of last resort." Powell v. Gulf Coast Carriers, Inc., 872 S.W.2d 22, 24 (Tex.App.-Houston [14th Dist.] 1994, no writ). This Court's review of an arbitrator's findings is "extraordinarily narr......
  • Continental Holdings, Ltd. v. Leahy
    • United States
    • Texas Court of Appeals
    • November 20, 2003
    ...has the effect of a judgment of a court of last resort. CVN Group, Inc. v. Delgado, 95 S.W.3d 234, 238 (Tex.2002); Powell v. Gulf Coast Carriers, Inc., 872 S.W.2d 22, 24 (Tex.App.-Houston [14th Dist.] 1994, no writ). This case is not a direct appeal from an arbitration award. Rather, Contin......
  • Anzilotti v. Gene D. Liggin, Inc.
    • United States
    • Texas Court of Appeals
    • March 16, 1995
    ...an arbitration award, an appellant must allege a statutory or common law ground to vacate the arbitrator's award. Powell v. Gulf Coast Carriers, Inc., 872 S.W.2d 22, 24 (Tex.App.--Houston [14th Dist.] 1994, no writ). Revised Civil Statute article 237 provides the statutory grounds for vacat......
  • Request a trial to view additional results
2 books & journal articles
  • Table of Cases
    • United States
    • James Publishing Practical Law Books Texas DTPA Forms & Practice
    • March 31, 2016
    ...552, 555 (Tex. App.—Houston [1st Dist.] 1983, aff’d 693 S.W.2d 462 (Tex. Crim. App. 1985), §9.05 Powell v. Gulf Coast Carriers, Inc. , 872 S.W.2d 22, 24 (Tex. App.—Houston [14th Dist.] 1994, no writ), §8.01.5 PPG Industries v. JMB/Houston Centers , 146 S.W.3d 79, 96 (Tex. 2004), §§1.02.4.3,......
  • Pre-Trial Proceedings
    • United States
    • James Publishing Practical Law Books Texas DTPA Forms & Practice
    • March 31, 2016
    ...arbitrators can be against both the law and the evidence and still be upheld. As the court said in Powell v. Gulf Coast Carriers, Inc. , 872 S.W.2d 22, 24 (Tex. App. — Houston [14th Dist.] 1994, no writ), “a mere mistake of fact or law alone is insufficient to set aside an arbitration award......

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