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ARTICLE · 03 AUGUST 2016

Fifth Circuit Rejects Misbehavior Challenge To Arbitration Award

Carlton Fields
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Southwest, the owner of a surgical and imaging facility in Houston, entered into a purchase and sale agreement in 2008 with Rainier Capital Acquisitions LP, which assigned its interest to Rainier DSC.

United StatesLitigation, Mediation & Arbitration
Rob DiUbaldo
Rob DiUbaldo

Foundation Surgery Affiliate of Southwest Houston, LLC ("Southwest"), the owner of a surgical and imaging facility in Houston, entered into a purchase and sale agreement in 2008 with Rainier Capital Acquisitions, LP, which assigned its interest to Rainier DSC (together with the other related defendants-appellees, "Rainier"). Rainier DSC purchased the subject property and sold fractional tenant-in-common interests to Plaintiffs (the "Investors"), who each signed an agreement with Rainier DSC that contained an arbitration provision. After several years, Southwest ceased making certain payments required by the agreement. The Investors sued Southwest, Rainier and individual physician members of Southwest, among others, alleging various state law claims and violations of federal securities laws. After the suit was removed, Rainier moved to compel arbitration. The Investors ultimately agreed to arbitrate their claims against Rainier.

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