ZEM C.S.H.B. 1425 75(R)BILL ANALYSIS


CIVIL PRACTICES
C.S.H.B. 1425
By: Dunnam
4-25-97
Committee Report (Substituted)



BACKGROUND 

Arbitration in Texas is often governed by either or both the Texas
Arbitration Act (TAA) and the Federal Arbitration Act (FAA) by virtue of
its incorporation into agreements between two parties.  A party who is
improperly denied arbitration under an agreement that incorporates the TAA
may file an interlocutory appeal pursuant to Section 171.017 of the Texas
Civil Practice and Remedies Code.  However, there is no such right to
conduct an interlocutory appeal of such a denial of an agreement that
incorporates the FAA.  Rather, a party who is improperly denied
arbitration under an agreement that incorporates the FAA must seek a writ
of mandamus.  When an agreement incorporates both the TAA and the FAA, and
the Trial Court improperly denies arbitration, the proponent of
arbitration must appeal the denial of the TAA and file a separate writ of
mandamus of the FAA.  This inconsistency exists in the entire arbitration
process in regard to appellate review under each act. 

PURPOSE

The purpose of this legislation is to eliminate inconsistencies between
the appellate review process of matters governed by the Federal
Arbitration Act those under the Texas Arbitration Act. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Repeals Section 171.017, Civil Practice and Remedies Code,
which relates to appeals from arbitration orders or awards. 

SECTION 2.  Applies prospectively; savings clause.

SECTION 3.  Effective date:  September 1, 1997.

SECTION 4.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute repeals Sec. 171.017 of the Civil Practice and
Remedies Code. relating to appeals from arbitration orders or awards
instead of amending Sec. 51.014 of the Civil Practice and Remedies Code,
relating to appeals from interlocutory orders.