Texas Supreme Court Orders Arbitration in Oil and Gas Dispute

Last week, the Supreme Court of Texas decided In re Gulf Exploration, LLC, No. 07-0055 (Tex. Apr. 17, 2009). The issue was whether mandamus review of orders compelling arbitration should be entirely precluded. Thanks to Don Philbin for bringing this case to our attention.

First, the court noted the narrow exception articulated by the Fifth Circuit in Apache Bohai v. Texaco China, that mandamus might be available if an applicant can show “clearly and indisputably that the district court did not have the discretion to stay the proceedings pending arbitration.” Then, it reasoned that reviewing all orders to see if they comply with the exception would frustrate Congressional intent to “move the parties .. out of court and into arbitration as quickly as possible.” The court concluded that mandamus relief was not available in this case, and directed the court of appeals to vacate its judgment and order the trial court to reinstate the order compelling arbitration.

See also: Texas Supreme Court Sends Parties to Arbitration in JOA Dispute, by Natalie Barletta, The Energy Law Blog.

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