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Texas Petrochemicals LP v. ISP Water Management Services LLC

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Submitted on September 24, 2009

OPINION

We are asked to determine whether the trial court erred in refusing to compel arbitration. Texas Petrochemicals LP (“TPC”) and ISP Water Management Services LLC (“ISP”) jointly own a dock that TPC operates under the terms of a written agreement. Contending that TPC had not complied with the terms of the written agreement, ISP sued TPC seeking to partition the dock. TPC sought arbitration of ISP’s claims. ISP resisted and asserted that the scope of the agreement did not include any agreement to arbitrate claims for equitable relief. Without making any findings of fact or conclusions of law, the trial court denied TPC’s motion to compel arbitration. Because the claims that ISP advanced regarding the partition of the property rely on the contract and are factually intertwined with ISP’s claims that TPC breached the contract, we hold that ISP’s claims are within the scope of the parties’ arbitration agreement. Therefore, the trial court erred in denying TPC’s motion to compel arbitration.

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