Service Corporation International v. Ruiz
Texas Court of Appeals
2018 WL 549196 (2018)
- Written by Kate Luck, JD
Facts
Service Corporation International (SCI) (defendant) signed contracts with Mary Ruiz (plaintiff) agreeing to provide funeral and interment services for Ruiz’s brother. Both contracts contained arbitration clauses in which Ruiz agreed to arbitrate any claims she might have against SCI. The contracts did not require SCI to arbitrate its claims against Ruiz. In the interment contract, Ruiz also agreed to pay liquidated damages in the event of breach and to limit her ability to assign the contract. In return, SCI agreed to give Ruiz permanent interment rights and to maintain the cemetery. In the funeral contract, Ruiz agreed to pay SCI in exchange for SCI’s provision of goods and services. After Ruiz’s brother’s remains were mishandled, Ruiz filed a complaint for fraud against SCI. SCI filed a motion to compel arbitration. Ruiz asserted three defenses to SCI’s motion to compel arbitration: (1) unconscionability, (2) fraud, and (3) that the claim fell outside of the scope of the arbitration clause. The trial court denied SCI’s motion to compel arbitration, finding that Ruiz’s fraud claim fell outside of the scope of the arbitration clause. SCI filed an interlocutory appeal.
Rule of Law
Issue
Holding and Reasoning (Rodriguez, J.)
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