The Supreme Court of Texas today upheld the right to appeal from an order that vacates an arbitration award under the Texas Arbitration Act and directs a rehearing with a different arbitrator.
The Court relied on TAA’s provision that “[a] party may appeal a judgment or decree entered under this chapter or an order . . . confirming or denying confirmation of an award”. Tex. Civ. Prac. & Rem. Code § 171.098(a)(3).
The party that fought the appeal pointed to subsection (5), which relates to an order “vacating an award without directing a rehearing”, and urged that “an order denying confirmation . . . under subsection (3) is rendered not appealable by subsection (5) if it also vacates the award and directs a rehearing.” East Texas Salt Water Disposal Co., Inc. v. Werline, No. 07-0135, slip op. at 4 (Tex. Mar. 12, 2010).
Chief Justice Jefferson, along with Justices Green and Medina, dissented.