In re International Bank of Commerce

In In re International Bank of Commerce, No. 13-07-693-CV, 2008 WL 192260 (Tex. App.--Corpus Christi Jan. 18, 2008, orig. proceeding mand. denied) (mem. op.) the trial court refused to compel arbitration based on its determination that the bank had waived its right to arbitrate. The bank challenged that finding in its petition for writ of mandamus, but failed to address the other defenses to arbitration that real parties in interest had raised in the trial court. Id. The issue in the mandamus proceeding was whether the bank was required to challenge the other potential grounds to defeat arbitration that were not expressly ruled on by the trial court. Id. The court of appeals observed that the parties had not cited to any opinion in an original proceeding in which summary judgment principles had been applied. However, the court recited the summary judgment rule that, when the court states the basis for its ruling, an appellant is required to attack only the stated ground for the ruling. Id. The court of appeals will usually decline to address the alternative grounds and, instead, remand the case to the trial court for consideration of the additional grounds. Id. However, when the parties raise the alternative grounds, the court of appeals, in the interest of judicial economy, may rule on those grounds presented to the trial court, but not expressly ruled on. Id. In sum, the plaintiffs brought a breach of contract suit and request for injunctive relief against their bank. The bank sought arbitration pursuant to the contracts, but its request to compel arbitration was denied by the trial court. Id. The plaintiffs argued that they could not be compelled to arbitration because the bank allegedly orally represented that the contracts did not contain any arbitration provisions. The Court noted that the plaintiffs had executed fifty documents that contained arbitration provisions and held as a matter of law that they could not reasonably rely on prior oral representations that were contrary to the direct, clear, and unambiguous language contained in the fifty documents they signed.