Taylor v. Wilson

"We find no room for doubt in the legislature's intent to restrict the meaning of the personal injury exception of the Texas Arbitration Act to physical personal injury."

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Click here for the full text of this decision FACTS:Valerie Wilson hired Dennis Taylor and his firm, Shepherd, Smith & Bebel, to represent her on a claim against an investment firm and its broker. As part of the relationship, the parties signed a power of attorney agreement and contingent fee contract that contained an arbitration clause. Claiming that the firm entered into a $40,000 settlement with the investment firm without her authorization, Wilson filed a legal malpractice action against Taylor and Shepherd, Smith & Bebel. The firm sought to compel arbitration, citing the clause in the contingent-fee contract. The Texas Arbitration Act (TAA) does not apply to a claim for personal injury unless, under Texas Civil Practice & Remedies Code 171.002(a)(3), each party to a claim, on the advice of counsel, agrees to arbitrate in writing, and the agreement is signed by both sides’ attorneys. The parties here did not follow 171.002(a)(3), so the trial court ruled the arbitration agreement was unenforceable and thus denied the motion to compel. On appeal, the attorney and the law firm argue that the case was not a personal-injury suit and so 171.002(a)(3) would not have applied. HOLDING:Reversed and remanded. Confirming that this is an issue of first impression for this court, the court reviews three cases from three other Texas Courts of Appeals and finds it agrees with cases from the 4th and 7th Courts of Appeals and disagrees with a case from the 13th Court of Appeals. The former courts held that a legal malpractice claim is not a claim for personal injury. The court finds support for its conclusion in the legislative history underlying the personal-injury provision of the TAA. OPINION:Anderson, J.; Anderson, Frost and Seymore, JJ.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Trending Stories

 

Featured Product

Global Briefing

A weekly, curated selection of our international content from around the globe, across the business of law, in-house, regulatory, technology and more, with expert insights from our senior editors.

Learn More

More from ALM

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Privacy Policy

About Us / Contact Us / Site Map / Advertise With Us/ Customer Service / Terms of Service/ FAQ / Privacy Policy

Publications

Law Topics

Rankings

More

Law.com

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.