James P. MacIvor, Phoenix Air Transport, Inc., and Nighthawk Air Systems v. Zuehl Airport Flying Community Owners Association, Inc.

Summary

The Texas Sixth Court of Appeals held that Zuehl Airport Flying Community Owners Association did not establish the existence of a valid arbitration agreement with James P. MacIvor. Because the association failed to show that the amendment adding mandatory arbitration received the required number of votes, the court reversed the trial court’s order compelling arbitration and did not reach the remaining issues. The opinion also addresses the absence of a demonstrated basis for binding Phoenix Air Transport, Inc. and Nighthawk Air Systems, Inc. to the arbitration award.

Holdings

1. ZAFCOA failed to establish the existence of a valid arbitration agreement because the record did not show that the 2015 resolution received the number of votes required by the governing covenants or the Texas Property Code.
2. MacIvor did not waive or fail to preserve his challenge to the existence of the arbitration agreement by participating in arbitration ordered by the trial court.
3. The court declined to affirm the judgment against Phoenix and Nighthawk because ZAFCOA did not establish that they were parties to the trial court's arbitration referral or otherwise waived their challenge to the existence of an arbitration agreement.

Questions Presented

1. Whether ZAFCOA established the existence of a valid arbitration agreement based on the purported 2015 amendment to the subdivision's covenants.
2. Whether participation in court-ordered arbitration waived or forfeited the appellants' challenge to the existence of an arbitration agreement.
3. Whether the judgment could be affirmed against Phoenix and Nighthawk when they were not parties to the trial court's order compelling arbitration.
4. Whether the appellate court needed to address the appellants' remaining challenges concerning the scope of arbitration, attorney fees, and vacatur of the award.

Disposition

reversed_and_remanded