Forest Oil Corporation and Daniel B. Worden, Petitioners v. James Argyle McAllen, El Rucio Land and Cattle Company…

Summary

The Texas Supreme Court held that the settlement agreement’s waiver‑of‑reliance provision bars McAllen’s fraudulent‑inducement claim as a matter of law, enforces the arbitration clause and orders the trial court to compel arbitration, and remands for the trial court to determine severance of nonsignatory claims after arbitrators decide scope. Chief Justice Jefferson dissented, arguing the disclaimer should not defeat a fraud claim.