The Supreme Court of Texas has reversed an appellate court’s holding that a company waived its right to arbitration by substantially invoking the judicial process. In Richmont Holdings, Inc. v. Superior Recharge Systems, L.L.C., No. 13-0907 (Tex., December 19, 2014), Richmont Holdings purchased the assets of another company, Superior Recharge Systems, through an affiliate. The parties’ purchase agreement stated they would resolve any future disputes through binding arbitration.
At the time of the asset purchase, one of Richmont Holdings’ affiliates, Superior Acquisition, agreed to employ Superior Recharge Systems’ co-owner and manager Jon Blake as general manager for a period of two years. The related employment agreement included a non-compete clause but it did not include an arbitration provision. After six months of employment, however, Blake was allegedly terminated for cause.
