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 broad waiver‑of‑reliance provision bars McAllen’s fraudulent‑inducement claim as a matter of law and that the arbitration clause is enforceable, ordering the trial court to compel arbitration and stay the litigation. The Court reversed the Court of Appeals and remanded for the trial court to determine severability after arbitrators decide the scope of arbitrable issues. Justice Jefferson, dissenting, argued that the waiver should not defeat a fraudulent‑inducement claim.