Texas Supreme Court

Cvn Group, Inc, Petitioner v. Enrique Delgado and Marjorie Delgado, Respondents

December 31, 200246 Tex. Sup. Ct. J. 366

Summary

The Texas Supreme Court held that the validity of a mechanic's lien securing a debt is a matter for the court, not an arbitrator, and therefore the arbitrator exceeded his authority by declaring the liens valid; the trial court erred by limiting its review to the arbitration record and must conduct a full evidentiary hearing on lien validity before ordering foreclosure. The Court reversed the Court of Appeals and remanded for further proceedings. Justice HANKINSON, dissenting, argued that courts must decide lien validity and that the majority’s view would undermine homestead protection.