Does Adoption of AAA Rules Show Parties Wanted Arbitration? SCOTX Hears Arguments

One of the top business cases being heard by the Texas Supreme Court this term offers the court an opportunity to weigh in on the recurring and key issue of whether a contract’s incorporation of standard arbitration rules shows “clear and unmistakable” evidence of intent to arbitrate.

The arbitration dispute is over a $41 million claim by MP Gulf of Mexico against Total E&P USA over common interests in offshore oil and gas leases in the Gulf of Mexico. In 2017, MP, as operator of the Chinook leases, proposed to Total that a well be reentered. Total elected not to participate. MP proceeded and in 2019 billed Total, which disagreed with the billed amounts and refused to pay. After a failed mediation, the arbitration dispute ensued. The 165^th District Court in Harris County denied MP’s motion to compel arbitration.