Thomas J. Daley
Thomas J. DaleyKoonsFuller, P.C. - Texas Family Law Powerhouse
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FAQ/Question

What contract language allows an arbitrator to decide if a dispute must be arbitrated?

This question has been addressed in 1 Texas court opinion:

Patriot Power Group, LLC v. Fasken Oil and Ranch, Ltd.

COA08 — January 27, 2026

In Patriot Power Group, LLC v. Fasken Oil and Ranch, Ltd., the parties entered into a service agreement containing an arbitration clause that incorporated the American Arbitration Association (AAA) Rules. When a dispute arose, Fasken challenged the enforceability of the arbitration agreement, citing a lack of mutuality and failure to satisfy conditions precedent. The trial court denied the motion to compel arbitration. The Eighth Court of Appeals reversed, holding that the express incorporation of AAA Rules constitutes "clear and unmistakable" evidence that the parties intended to delegate threshold questions of arbitrability to the arbitrator. The court reasoned that because the challenges were directed at the agreement as a whole rather than the delegation clause specifically, the arbitrator—not the trial court—must decide issues of validity and enforceability.

Litigation Takeaway

“Including "boilerplate" references to AAA or JAMS rules in a prenuptial or mediated settlement agreement effectively strips the trial court of its power to determine if the agreement is valid; instead, any challenge to the contract's enforceability will be decided by a private arbitrator rather than a judge in a public courtroom.”

Thomas J. Daley

Texas Family Law Litigation

Sophisticated litigation strategies for Texas families. Experience, integrity, and results when it matters most.

Targeted Resources

  • Divorcing a Narcissist
  • Dividing Retirement Assets
  • Fathers' Involvement
  • High-Asset Divorce

Contact Info

  • 1-972-769-2727
  • tdaley@txfamlaw.com
  • 5700 W. Plano Parkway Ste 2200, Plano, TX 75093
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