| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to determination of the validity and enforceability of a |
|
|
contract containing an arbitration agreement. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 171, Civil Practice and |
|
|
Remedies Code, is amended by adding Section 171.027 to read as |
|
|
follows: |
|
|
Sec. 171.027. DETERMINATION OF VALIDITY AND ENFORCEABILITY |
|
|
OF CONTRACT CONTAINING AGREEMENT TO ARBITRATE. (a) If a party |
|
|
opposing an application to compel arbitration or making an |
|
|
application to stay arbitration asserts that the contract |
|
|
containing the agreement to arbitrate is not valid or enforceable, |
|
|
notwithstanding any provision of the contract to the contrary, the |
|
|
court shall try the issue promptly and may order arbitration only if |
|
|
the court determines that the contract containing the agreement to |
|
|
arbitrate is valid and enforceable against the party seeking to |
|
|
avoid arbitration. |
|
|
(b) A determination under this section that a contract is |
|
|
valid and enforceable does not affect the court's authority to stay |
|
|
arbitration or refuse to compel arbitration on any other ground |
|
|
provided by law. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to a contract entered into on or after the effective date of this |
|
|
Act. A contract entered into before the effective date of this Act |
|
|
is governed by the law in effect immediately before that date, and |
|
|
that law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2011. |