CVN Group Inc. v. Delgado – Case Brief Summary (Texas)

In CVN Group Inc. v. Delgado, 95 S.W.3d 234, 237 (Tex. 2002), the supreme court assumed without deciding that the TAA does not preempt this common law ground for vacatur. Id. at 238.

If there is a public policy ground for vacatur, the supreme court concluded, an arbitration award can be set aside only "in an extraordinary case in which the award clearly violates carefully articulated, fundamental policy." Id. at 239.

The Delgados argued that an arbitrator violated public policy by wholly disregarding Texas's constitutional and statutory requirements to perfect a mechanic's lien on a homestead. Id. at 239.

The supreme court agreed that such total disregard would violate public policy, but it rejected the Delgados' argument that such disregard had occurred. Id.

Rather, the question of compliance with the requirements was arbitrated, and the arbitrator decided that question against the Delgados. Id.

Nothing in the record indicated that the arbitrator had completely disregarded the requirements for lien perfection, so the court held that the arbitrator's ruling could not be disturbed on public policy grounds. Id. at 239, 243.