Michael Pullara v. American Arbitration Association, Inc., Paxson & Associates, P.C. and Stephen B. Paxson
Michael Pullara appealed a summary judgment granted against him in favor of the American Arbitration Association (AAA), Paxson & Associates, P.C., and Stephen B. Paxson. Pullara sued Paxson and the AAA for damages, alleging Paxson failed to disclose his long-standing role as general counsel for the Greater Houston Builders Association (GHBA) before being selected as an arbitrator in a dispute between Pullara and Becker Fine Builders, Inc. Pullara contended this nondisclosure revealed a bias. The appellate court affirmed the trial court's judgment, holding that Pullara's claims are barred by the doctrine of arbitral immunity, which extends to arbitrators and their sponsoring organizations for acts performed in their quasi-judicial capacity, including failure to disclose potential biases. The court rejected Pullara's arguments that arbitral immunity conflicts with Texas statutory law or prior Texas Supreme Court holdings on evident partiality, emphasizing that the remedy for non-disclosure is vacating the award, not a cause of action for damages.