Callahan & Assocs. v. Orangefield Indep. Sch. Dist

In Callahan & Assocs. v. Orangefield Indep. Sch. Dist., 92 S.W.3d 841, 844, 46 Tex. Sup. Ct. J. 270 (Tex. 2002), the Texas Supreme Court considered whether a failure to award damages constitutes a gross mistake. Callahan, 92 S.W.3d at 843-44. The arbitrator in Callahan determined that the defendant was liable for the plaintiff's defective driveway, but failed to award damages despite the record evidence about the costs plaintiff incurred to replace the driveway. Id. The Texas Supreme Court held as follows: An arbitrator does not violate the common law simply by failing to award damages. See Teleometrics Int'l, Inc. v. Hall, 922 S.W.2d 189, 193 (Tex. App--Houston 1st Dist. 1995, writ denied) (Gross mistake, as a common law ground for setting aside an arbitration award, is a mistake that implies bad faith or failure to exercise honest judgment.). Id. at 844.