In Re Morgan Stanley & Co., Inc., Successor to Morgan Stanley Dw, Inc., Relator

Summary

The Texas Supreme Court denied the relator's petition for mandamus, holding that the trial court correctly kept the issue of the plaintiff's mental capacity to contract for the court, not an arbitrator. The Court relied on the Federal Arbitration Act and the separability doctrine, concluding that capacity is a contract‑formation defense that must be decided by a judge. A dissent argued the issue should be decided by an arbitrator. Two concurring opinions agreed with the majority but offered additional commentary on estoppel and statutory interpretation.