In Re Labatt Food Service, L.P., Relator.

Summary

The Texas Supreme Court held that a decedent employee's pre-death agreement to arbitrate disputes with his employer binds his wrongful death beneficiaries even though they did not sign it, because their statutory wrongful death claims are entirely derivative of the decedent's rights and they stand in his 'legal shoes.' The court further held that the beneficiaries' broad challenge to the entire agreement — that an indemnity clause violates Labor Code section 406.033(e) and renders the whole contract void — must be resolved by the arbitrator rather than the courts, because the challenge is not directed solely at the arbitration clause. Finding the trial court clearly abused its discretion in refusing to compel arbitration, the court conditionally granted mandamus and directed the trial court to order arbitration of the beneficiaries' claims.