Arbitrability Ruling: Key Lessons From Texas Business Court's BNSF v. Level 3 Decision

The Honorable Andrea K. Bouressa, with the Texas Business Court Division 1, issued a decision addressing the scope of arbitrator authority and the enforceability of arbitration awards. In BNSF Railway Company v. Level 3 Communications, LLC, Judge Bouressa confirmed an arbitration award in favor of Level 3 and denied BNSF's motion to vacate. The case offers lessons for businesses about arbitration clauses and the rules they incorporate, confirming that when the Commercial Rules of the American Arbitration Association are incorporated into a contract the decision as to arbitrability of a particular claim is decided by the arbitrator rather than the court.

Background and Key Facts