In re Q Directional Drilling LLC, Twister Drilling Tools LLC, and Jim Beasley

In re Q Directional Drilling · Court of Appeals for the Ninth District of Texas at Beaumont · July 20, 2017 · No. 09-17-00198-CV

Summary

The Ninth District Court of Appeals of Texas conditionally granted mandamus relief requiring enforcement of a contractual jury-trial waiver in a stock redemption agreement. The court held that the waiver was enforceable because the alleged fraud was directed at the agreement as a whole, rather than specifically at the waiver, and because the plaintiff ratified the waiver after receiving and reviewing the agreement.

Holdings

  1. A contractual jury waiver is enforceable when the alleged fraud is directed at the agreement as a whole rather than specifically at the jury-waiver provision.
  2. Acceptance of contractual benefits after an opportunity to examine the agreement ratifies a seemingly conspicuous jury waiver.
  3. The trial court abused its discretion by failing to enforce the contractual jury waiver, warranting conditional mandamus relief.

Questions Presented

  1. Whether the contractual jury-trial waiver was enforceable when Grodeski alleged that the entire redemption agreement, but not the jury-waiver provision specifically, was fraudulently induced.
  2. Whether Grodeski ratified the jury waiver by accepting the benefits of the redemption agreement after having an opportunity to review it.
  3. Whether the trial court abused its discretion by failing to enforce the contractual jury waiver.

Disposition

writ_granted

Cases Cited (3)

  • In re Gen. Elec. Capital Corp., 203 S.W.3d 314, 316 (Tex. 2006)(followed)
  • In re Weeks Marine, Inc., No. 14-09-00580-CV, 2009 WL 3231570, at *3 (Tex. App.—Houston [14th Dist.] Oct. 8, 2009, orig. proceeding) (mem. op.)(followed)
  • In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 134-35 (Tex. 2004)(followed)

Cited In (0)

No citing cases on record yet.

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