Papalote Creek II, LLC v. Lower Colorado River Authority

The Fifth Circuit reversed the district court's order compelling Papalote to arbitrate a dispute raised by the Authority over whether their contractual agreements limited the Authority's liability to $60 million. In this case, the arbitration clause required Papalote and the Authority to arbitrate any dispute that arose with respect to either party's performance. The court held that the dispute at issue was an interpretative dispute, not a performance dispute, and was therefore outside the scope of the arbitration clause. The court remanded for further proceedings. View "Papalote Creek II, LLC v. Lower Colorado River Authority" on Justia Law