Petrohawk Energy Corporation v. Overwatch Enterprises, LLC ( 2016 )


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  •                                                                                                          ACCEPTED
    04-16-00282-CV
    FOURTH COURT OF APPEALS
    SAN ANTONIO, TEXAS
    5/31/2016 7:06:35 PM
    KEITH HOTTLE
    CLERK
    04-16-00282-CV
    ________________________________________________________________________
    IN THE COURT OF APPEALS                FILED IN
    FOURTH JUDICIAL DISTRICT         4th COURT OF APPEALS
    SAN ANTONIO, TEXAS
    SAN ANTONIO, TEXAS
    5/31/2016 7:06:35 PM
    ________________________________________________________________________
    KEITH E. HOTTLE
    Clerk
    Petrohawk Energy Corporation,
    Defendant-Appellant,
    v.
    Overwatch Enterprises, LLC,
    Plaintiff–Appellee.
    ________________________________________________________________________
    ON INTERLOCUTORY APPEAL FROM THE 36th JUDICIAL DISTRICT
    COURT, MCMULLEN COUNTY, TEXAS, CAUSE NO: M-14-0051-CV-A
    ________________________________________________________________________
    APPELLANT’S EMERGENCY MOTION FOR STAY PENDING
    APPELLATE REVIEW OF ORDER DENYING
    MOTION TO COMPEL ARBITRATION
    ________________________________________________________________________
    This is an accelerated interlocutory appeal of an order denying a motion to compel
    arbitration.1 Appellant Petrohawk Energy Corporation (“Petrohawk”) filed the motion to
    compel arbitration on March 4, 2016. 2 On April 27, 2016, the motion to compel
    1
    Petrohawk submits in support of this Motion a sworn Appendix containing documents relevant
    to the Court’s determination of the issue presented here. A copy of the trial court’s order denying
    the motion to compel arbitration is provided in the Appendix at Tab A. The timely-filed notice
    of appeal, dated May 3, 2016, is attached at Tab B.
    2
    The motion, without its exhibits, is attached at Appendix Tab C. The Clerk’s Record and
    Reporter’s Record became available to Petrohawk on May 26, 2016, though as delivered they are
    incomplete in some respects. The Clerk’s Record in its present form is cited herein as CR ___
    and the Reporter’s record as RR ___. The motion to compel arbitration, entitled Defendants’
    Motion to Compel Arbitration and Stay Proceedings, appears with its exhibits at CR 111.
    arbitration was heard before the Honorable Joel B. Johnson, visiting judge. At the
    hearing, counsel for Appellee Overwatch Enterprises, LLC (“Overwatch”) explicitly
    argued that Judge Johnson should deny Petrohawk’s motion because Petrohawk would be
    allowed to appeal:
    If they want to check your decision, they have a right to go and check that
    decision on appeal . . . If they want to check your decision, they can. We
    can’t. We get sent off to arbitration, somebody in Houston, one man, will
    get to make a decision on this.3
    Judge Johnson denied the motion to compel arbitration, on grounds of waiver, at the
    conclusion of the hearing.4 Trial is set for July 18, 2016, just seven weeks away.5 After
    attempting to confer with Overwatch’s counsel—who had stated to the court at the
    hearing that he was “not necessarily opposed to a continuation of the jury trial,”6 but
    ultimately did not agree to any continuation—Petrohawk on May 6, 2016, filed a motion
    asking the trial court to stay proceedings and continue the trial while Petrohawk pursued
    this appeal with respect to arbitration.7 That motion to stay and continue was denied by
    Judge Patrick Flanigan in an order signed May 25, 2016, which stated that “if
    Interlocutory Appeal is permitted in the case, the Court of Appeals may consider
    Defendant’s Motion for Stay.”8
    3
    Transcript, Appendix Tab D at 33:13–14, 34:3–5.
    4
    See 
    id. at 34:14–19.
    5
    CR 107.
    6
    See Transcript, Appendix Tab D at 36:12–14. Counsel may have been referring to a
    continuance for a fixed time, as opposed to a continuance for the duration of the appeal.
    7
    See Appendix Tab E.
    8
    See Appendix Tab F. Petrohawk does not appeal this order of May 25, 2016.
    2
    Texas Rule of Appellate Procedure 29.3 allows this Court to “make any temporary
    orders necessary to preserve the parties’ rights” while an interlocutory appeal is under
    consideration. Petrohawk’s contractual right to arbitration will be irreparably damaged if
    this case proceeds to trial in a court rather than adjudication by the American Arbitration
    Association as called for in the contract at the center of Overwatch’s claims.9 Petrohawk
    accordingly files this Motion requesting a stay of all trial court proceedings pursuant to
    Rule 29.3.10
    I.     Background
    Plaintiff Overwatch filed this case in McMullen County, Texas on October 20,
    2014. Overwatch’s live pleading is the “Second Amended Original Petition” (herein
    “SAP”) filed August 24, 2015. 11 The SAP revolves around a 2012 Master Service
    Contract (“2012 MSC”)12 that Appellee Overwatch defines as “the Contract” at the outset
    of the SAP:
    OTG Services, LLC (hereafter “OTG”) had an ongoing contractual
    relationship     with      Defendant,      PETROHAWK            ENERGY
    CORPORATION, for the provision of security and gate guard services at
    various oil and gas well locations in South Texas. On or about February 9,
    2012, Defendant and OTG Services, LLC entered into a “Master Service
    Contract” (sometimes referenced herein as “the Contract.”), which was
    assigned to Plaintiff [Overwatch].
    9
    See Part I, infra.
    10
    To be clear, Petrohawk has not appealed the denial of its May 6, 2016 motion for stay and
    continuance pending appeal in the trial court. That motion was directed to the trial court’s
    continuing ability to make orders related to the case. See Tex. R. App. P. 29.5. This Motion,
    before this Court, is directed to this Court’s discretion.
    11
    See Appendix Tab G; CR 69.
    12
    See Appendix Tab H (as filed with business records affidavit).
    3
    SAP (Tab G) ¶ 4. Overwatch seeks to recover amounts that it claims to be owed in
    connection with the security and gate guard services it provided under the 2012 MSC.
    Overwatch alleges that Petrohawk breached the 2012 MSC and “fail[ed] to perform” it,
    and specifically that Petrohawk failed to pay for services under it, delayed payments, and
    otherwise failed in its contractual duties. See 
    Id. ¶ 17.
    Overwatch also alleges
    misrepresentations (concerning outstanding invoices under the 2012 MSC) and breach of
    an alleged oral agreement (which Plaintiff asserts established a “custom, practice, and
    course of dealing” under the 2012 MSC). See 
    id. at ¶¶
    5–6, 10. These allegations
    concern and arise out of Overwatch’s provision of security and gate guard services as set
    forth in the 2012 MSC. Prior to the SAP, filed August 24, 2015, Overwatch’s Petitions
    did not rely specifically on the 2012 MSC, but instead asserted a vague “ongoing
    contractual relationship.”13
    Throughout 2015, the parties conducted some preliminary discovery, taking five
    depositions and serving a small number of discovery requests in both directions.14 As of
    August 25, 2015—the day after the SAP was filed—Overwatch stated in a discovery
    response that “[f]ormal discovery has just begun.”15
    Shortly thereafter, the case entered into a period of inactivity—no discovery, no
    motions, no contested hearings—that continued for six months until Petrohawk moved to
    compel arbitration on March 4, 2016. During this time, the parties jointly represented to
    the Court that they needed additional time to mediate, and that further time and discovery
    13
    See Plaintiff’s First Amended Original Petition CR 37, at ¶ 4.
    14
    See also hearing transcript, Appendix Tab D, at 14:17–20 (discussing Petrohawk’s requests).
    15
    See Plaintiff’s Responses to Request for Disclosure, Appendix Tab I, at 9.
    4
    were necessary before the case could be adjudicated. On September 1, 2015 (eight days
    after the SAP was filed), Plaintiff and Defendant filed a Joint Motion for Continuance.16
    In that motion, the parties jointly represented that scheduling conflicts had prevented
    mediation and “full discovery,” and stated in particular that “approximately five (5)
    additional depositions may be required.” 
    Id. In response
    to this Motion, the Court issued
    an order resetting trial for February 29, 2016.17 Subsequently, in response to further joint
    request of the parties, the Court reset trial for July 18, 2016.18
    It is undisputed that the parties never did conduct the discovery or mediation
    contemplated by the September 1, 2015 Joint Motion for Continuance. Mediation was
    postponed several times, at the instance of counsel for both parties.19 The depositions
    and “full discovery” contemplated by the September 1 motion did not ever take place.
    On March 4, 2016, Petrohawk filed its Motion to Compel Arbitration and Stay
    Proceedings,20 seeking to compel arbitration of the entire dispute under the 2012 MSC,
    and to stay the case under the nondiscretionary stay provision of Tex. Civ. Prac. & Rem
    Code § 171.025(a) (“The court shall stay a proceeding that involves an issue subject to
    arbitration if an order for arbitration or an application for that order is made under this
    subchapter.”) The motion could not be set for hearing until April 27, 2016.
    16
    See Appendix Tab J.
    17
    CR 93.
    18
    CR 107.
    19
    See Transcript, Appendix Tab C at 27:1–3 (mediation postponed due to scheduling conflict on
    the part of Overwatch’s counsel). Mediation was also postponed at the instance of Petrohawk’s
    counsel. Subsequent to denial of the motion to compel arbitration, the parties again scheduled
    mediation for June 17, 2016.
    20
    Appendix Tab C (without exhibits); CR 111ff. (with exhibits); see also CR 157ff..
    5
    On April 25, 2016, Overwatch filed a Response that asserted waiver of right to
    arbitrate as the sole argument in opposition to arbitration.21 Petrohawk filed a reply the
    next day, April 26, 2016, contesting the waiver argument and providing extensive
    citations to Texas Supreme Court and Court of Appeals case law compelling arbitration
    in cases with more and lengthier litigation activity than the present case.22 The hearing
    took place April 27, 2016.
    At the hearing, Counsel for Petrohawk emphasized that waiver was the only
    argument made in Overwatch’s Response, 23 and that Overwatch bore the burden to
    establish waiver.24 Counsel for Petrohawk argued that Petrohawk had not substantially
    invoked the litigation process inter alia because (1) only limited discovery had been
    conducted, most of it benefitted Overwatch, and document production had been
    overwhelmingly by Petrohawk, not Overwatch, 25 (2) both parties had been content to
    leave the case essentially inactive for six months before Petrohawk moved to compel
    arbitration,26 and (3) the law heavily favors arbitration, and the Texas Supreme Court and
    Courts of Appeal had compelled arbitration in circumstances with more substantial
    21
    Appendix Tab K (without exhibits), at 5–17; see also CR 179ff. (same with exhibits).
    22
    Appendix Tab L.
    23
    Transcript, Appendix Tab D at 5:7–6:3. Counsel for Overwatch interrupted opposing
    counsel’s presentation to assert that this was not the case, and in fact he intended to make
    additional arguments. Counsel for Petrohawk twice requested the opportunity to respond to any
    such arguments, 
    id. at 6:11–15,
    18:13–24, but at the conclusion of the argument by counsel for
    Overwatch, the trial court ruled immediately without allowing any rejoinder. 
    Id. at 34:14–19.
    24
    See 
    id. at 13:23–35.
    25
    See 
    id. at 14:5–20.
    26
    See 
    id. at 7:1–22.
    6
    litigation activity for longer periods of time.27 Counsel argued that Overwatch had not
    been prejudiced inter alia because (1) the discovery conducted would be “useful in
    arbitration,” In re Vesta Group, Inc., 
    192 S.W.3d 759
    , 763 (Tex. 2006),28 (2) Most of the
    discovery was taken by Overwatch itself, which like most plaintiffs presumably would
    have jumped at the chance to take discovery in court prior to arbitration if given the
    choice,29 and (3) Overwatch’s willingness to request and tolerate delay and inactivity in
    the case showed lack of prejudice.30
    Counsel for Overwatch responded with, inter alia, arguments not present in
    Overwatch’s Response, such as asserting haphazardly that certain claims related to a
    different contract, which Overwatch did not attach to its Response or provide to the
    Court. 31 Counsel for Overwatch also emphasized inter alia that Petrohawk had filed
    counterclaims and designated experts,32 and that Overwatch had incurred discovery costs
    27
    See 
    id. at 10:5–11,
    12:23–13:22; 14:21–15:12.
    28
    See 
    id. at 15:15–16:22
    29
    See 
    id. at 16:23–17:13.
    30
    See 
    id. at 17:18–18:1.
    31
    See 
    id. at 23:2–22.
    Counsel for Overwatch inaccurately claimed that Overwatch somehow had
    put this contract into evidence via an affidavit that merely makes passing reference to it.
    Although Overwatch utterly failed to properly present arguments based on this contract,
    Petrohawk in its brief on the merits will address why any arguments based on it do not defeat the
    clear right to arbitration under “the Contract” as defined by Overwatch’s Petition, i.e., the 2012
    MSC. See also 
    id. at 18:15–24;
    Richmont Holdings, Inc. v. Superior Recharge Sys., L.L.C., 
    392 S.W.3d 633
    , 635 (Tex. 2013) (holding trial court ruling rejecting arbitration based on waiver
    could not be affirmed based on arguments not raised below questioning applicability of
    arbitration clause).
    32
    See 
    id. at 27:22–4;
    at 32:21–22. Petrohawk’s counsel directed the Court to G.T. Leach
    Builders, LLC v. Sapphire V.P., LP, 
    458 S.W.3d 502
    , 513–14 (2015), which found no waiver in
    circumstances involving a counterclaim, designation of experts and responsible third parties, and
    more.
    7
    during the litigation.33 He argued that any “delay alone” was prejudicial to Overwatch
    because it “hurt [Overwatch] cash flow wise.”34
    At the conclusion of the arguments, the trial court concluded that Petrohawk had
    waived arbitration by substantially invoking the litigation process and causing prejudice
    to Overwatch, and denied the motion.35
    In response to the trial court’s ruling, counsel for Petrohawk requested that the
    court stay proceedings, and trial in particular, pending appeal of the order denying the
    motion to compel arbitration.36 Counsel for Overwatch stated that he opposed a stay, but
    was “not necessarily opposed to a continuation of the jury trial, if they are going to do
    that.”37   Judge Johnson stated that he did not consider it appropriate, as a visiting judge,
    to rule on the issue, and that the request for stay pending appeal should be addressed to
    “the elected judge of this court.”38
    Petrohawk then filed its notice of appeal and attempted diligently for more than a
    week to confer with Overwatch regarding a potential agreed continuance and/or stay.
    Counsel for Overwatch stated repeatedly that he still needed to engage appellate counsel
    and confer with his client. Overwatch never agreed to any stay or continuance.
    33
    Transcript, Appendix Tab D at 32:1–10.
    34
    See 
    id. at 31:7–19.
    35
    
    Id. at 34:14–35:3.
    36
    
    Id. at 36:17–19,
    35:18–19.
    37
    
    Id. at 36:12–15.
    38
    
    Id. 8 Petrohawk
    therefore filed in the trial court its Motion to Stay Proceedings and
    Continue Trial Pending Interlocutory Appeal, on May 6, 2016.39 Petrohawk explained
    clearly that this was not a motion for reconsideration of the motion to compel arbitration
    or for non-discretionary stay in deference to arbitration; instead, it was a motion asking
    the trial court to continue trial and stay proceedings (other than mediation and any
    discovery that the parties agreed would facilitate mediation) while the appeal was
    pending.40 This motion was set for oral hearing on May 25, 2016. Overwatch responded
    by characterizing the motion as a motion for reconsideration and stating that it was
    inconvenient for counsel to come to McMullen County for the hearing.41
    The day before the hearing, May 24, 2016, counsel for Overwatch sent an e-mail
    stating that (1) his staff had contacted the trial court, (2) the hearing was cancelled, (3)
    Petrohawk’s motion would be denied, and (4) he had been asked to inform Petrohawk of
    these circumstances.42 On May 25, 2016 the trial court, Hon. Patrick Flanigan, signed an
    order stating that the motion was denied, but “if Interlocutory Appeal is permitted in the
    case, the Court of Appeals may consider Defendant’s Motion for Stay.” 43 Petrohawk’s
    interlocutory appeal is explicitly authorized by statute.44
    39
    See Appendix Tab E.
    40
    See 
    id. at 2
    (“This is not a motion for reconsideration of the Motion to Compel Arbitration”);
    3–4 (“Tex. Civ. Prac. & Rem. Code § 171.025(a) provides for a non-discretionary stay in
    response to an application for arbitration . . . Petrohawk requested such a stay as part of its
    Motion to Compel Arbitration, which was denied on April 27, 2016. The present motion does not
    seek reconsideration of that denial.”).
    41
    See Appendix Tab M.
    42
    See Appendix Tab N.
    43
    See Appendix Tab F. Petrohawk does not appeal this order of May 25, 2016.
    
    44 Tex. Civ
    . Prac. & Rem. Code §§ 171.098, 51.016.
    9
    II. Legal Standards
    Tex. R. App. P. 29.3 provides that “[w]hen an appeal from an interlocutory order
    is perfected, the appellate court may make any temporary orders necessary to preserve the
    parties’ rights until disposition of the appeal and may require appropriate security.”
    With respect to the underlying interlocutory appeal, this Court “review[s] whether
    a party has waived its right to arbitration de novo, giving no deference to the trial court's
    ruling.” IBS Asset Liquidations LLC v. Servicios Multiples Del Norte SA de CV, 
    419 S.W.3d 573
    , 575 (Tex. App.—San Antonio 2013, pet. denied) (citing Perry Homes v.
    Cull, 
    258 S.W.3d 580
    , 598 (Tex.2008)). Under Texas law, when two requirements are
    met—when (1) a valid arbitration agreement exists; and (2) the parties’ dispute falls
    within the scope of the agreement—“the [trial] court has no discretion but to compel
    arbitration and stay its own proceedings.” Forest Oil Corp. v. McAllen, 
    268 S.W.3d 51
    ,
    56 (Tex. 2008) (citation and internal quotation marks omitted). “The policy in favor of
    enforcing arbitration agreements is so compelling that a court should not deny arbitration
    unless it can be said with positive assurance that an arbitration clause is not susceptible of
    an interpretation which would cover the dispute at issue.”          Prudential Sec. Inc. v.
    Marshall, 
    909 S.W.2d 896
    , 899 (Tex. 1995). There is a strong presumption against
    waiver of arbitration, and any doubts regarding waiver are resolved in favor of
    arbitration. Perry Homes v. Cull, 
    258 S.W.3d 580
    (Tex. 2008).
    III. Argument
    It is necessary for this Court to stay trial court proceedings pending appeal, or else
    this case will proceed to trial before the appeal is likely to be decided. That would be a
    10
    waste of resources and a violation of the very rights at issue in the appeal. This Court
    and other Texas appellate courts routinely reverse denials of motions to compel
    arbitration, and while it is not possible fully to argue the merits of the appeal in this
    Motion, the frequency of such reversals and the circumstances of this case strongly
    counsel in favor of a stay.
    This case is set for trial on July 18, 2016, but as described above, both
    Overwatch’s counsel (who encouraged the trial court to deny Petrohawk’s motion on the
    grounds that Petrohawk would have an appeal as of right) 45 and the trial court (which
    denied Petrohawk’s motion for stay pending appeal with the statement that such a stay
    could be considered by this Court)46 have expected due appellate consideration of the
    denial of Petrohawk’s motion to compel arbitration.
    Petrohawk’s contractual right to arbitration cannot fully be preserved if the case
    proceeds to trial, because Petrohawk (and Overwatch) will prepare for and adjudicate the
    matter in a forum different from the one that was contractually agreed. 47 In that
    circumstance, the time and resources of the trial court, jurors, and the parties would be
    wasted for a proceeding that could be (and should be) rendered moot by a ruling of this
    Court compelling arbitration after all.
    45
    Transcript, Appendix Tab D at 33:13–14, 34:3–5.
    46
    See Appendix Tab F.
    47
    Subsequent to the denial of Petrohawk’s motion to compel arbitration, and in the absence of a
    stay, Petrohawk already has been forced to prepare for potential adjudication in the trial court
    contrary to Petrohawk’s right to arbitration. Petrohawk must protect its rights in court
    proceedings if that is what it is forced to do. Advocacy and participation in litigation subsequent
    to denial of a motion to compel arbitration does not constitute waiver, see, e.g., Tenneco Resins,
    Inc. v. Davy Int’l, 
    770 F.2d 416
    , 420 & n.5 (5th Cir. 1985), but as trial becomes imminent it
    imposes increasing burdens on a party that has the right to arbitrate instead.
    11
    In order to preserve the status quo and avoid irreparable damage to the rights
    sought to be protected by this appeal, it is necessary for this Court to stay the trial court
    proceedings while the Court considers the appeal. Texas appellate courts frequently stay
    trial court proceedings while considering appeals of orders denying motions to compel
    arbitration. See, e.g., City of San Antonio v. Int’l Ass'n of Firefighters, 
    441 S.W.3d 305
    (Tex. App.—San Antonio 2013, no pet.) (“I agree with the majority’s order to stay any
    trial on the merits in this lawsuit, pending this court’s decision on the arbitrability of this
    case”). This case presents an urgent need to do so.
    Overwatch may claim that the proximity to trial is an indicator of some sort of
    tardiness in seeking arbitration. To the contrary, Petrohawk moved to compel arbitration
    on March 4, 2016, 4.5 months prior to trial, and has steadfastly and diligently pursued
    arbitration and stay of trial court proceedings by various means since that time. This
    contrasts with the lack of progress that Overwatch and Petrohawk equally tolerated and
    contributed to since the September 1, 2015 Joint Motion for Continuance.
    This Motion does not attempt to argue the merits of the appeal or summarize all of
    the arguments that Petrohawk and Overwatch have made, and indeed, considering the
    “totality of the circumstances” nature of the waiver issue, it would be impossible to do so.
    Petrohawk’s brief on the merits is due June 14, 2016, but Petrohawk intends to file its
    brief early, no later than Tuesday, June 7, 2016.
    In considering this Motion, the Court should consider policies and presumptions in
    favor of arbitration and against waiver, and the frequency with which this Court, other
    courts of appeal, and the Texas Supreme Court have reversed lower court decisions and
    12
    compelled arbitration in recent years.       Opinions of this Court, for example, have
    summarized lengthy lists of litigation conduct including extensive discovery, motion
    practice, and months or years spent in court, before concluding that arbitration was not
    waived. See, e.g., In re Wells Fargo Bank 
    300 S.W.3d 818
    , 822-23, 830–31 (Tex.
    App.—San Antonio 2009, orig. proceeding); J.B. Hunt Transp., Inc. v. Hartman, 
    307 S.W.3d 804
    , 811–12 (Tex. App.—San Antonio 2010, no pet.); IBS Asset Liquidations
    LLC v. Servicios Multiples Del Norte SA de CV, 
    419 S.W.3d 573
    , 576 (Tex. App.—San
    Antonio 2013, pet. denied); Global Fin. Servs., L.L.C. v. Estate of McLean, 
    2008 WL 372521
    , at *2 (Tex. App.—San Antonio Feb. 13, 2008, no pet.) (unpublished).
    The Texas Supreme Court and other Texas courts of appeals have repeatedly
    rejected arbitration waiver arguments in cases with significant and lengthy litigation
    conduct, including pursuit of claims in court by the party seeking arbitration. The
    Supreme Court has rejected the proposition that asserting one’s own claims in court
    waives arbitration. See, e.g., Richmont Holdings, Inc. v. Superior Recharge Sys., L.L.C.,
    
    455 S.W.3d 573
    , 576 (Tex. 2014) (“Merely filing suit does not waive arbitration, even
    when the movant, as in this case, files a second, separate suit in another county based in
    part on a contract at issue in the first action.”); G.T. Leach Builders, LLC v. Sapphire
    V.P., LP, 
    458 S.W.3d 502
    , 513–14 (Tex. 2015) (finding no waiver, though party seeking
    arbitration had filed compulsory counterclaim, designated experts, and engaged in
    various other significant litigation conduct).
    Moreover, the Supreme Court and the courts of appeal have compelled arbitration
    in cases with lengthy and expensive prior court proceedings far exceeding those in the
    13
    present case. See, e.g., In re Vesta Group, Inc., 
    192 S.W.3d 759
    , 763 (Tex. 2006)
    (compelling arbitration after “litigat[ion] for two years in the trial court.”); Richmont
    
    Holdings, 455 S.W.3d at 575
    –76 (compelling arbitration when Movant filed 19 months
    after being sued); In re Serv. Corp. Int’l., 
    85 S.W.3d 171
    , 174 (Tex. 2002) (compelling
    arbitration after 15 months of state court litigation); Cooper Indus., LLC v. Pepsi-Cola
    Metro. Bottling Co., Inc., 
    475 S.W.3d 436
    , 451 (Tex. App.—Houston [14th Dist.] 2015,
    no pet.) (compelling arbitration after 28 months of litigation).
    The circumstances described in the background section of this Motion make clear
    that this case falls squarely within the realm of cases that this Court and others have
    compelled to arbitration, and that the appeal deserves serious consideration and a stay
    pursuant to Rule 29.3 to preserve Petrohawk’s rights while this Court considers whether
    this case likewise should be compelled to arbitration.
    Conclusion
    For the reasons herein given, Petrohawk moves for a stay of trial and all trial court
    proceedings (other than mediation) in the 36th Judicial District Court related to this
    matter, until the present appeal is resolved.
    Submitted May 31, 2016
    Respectfully submitted,
    DAVIS, CEDILLO & MENDOZA, INC.
    By:       /s/ Isaac J. Huron
    Ricardo G. Cedillo
    SBN: 04043600
    Isaac J. Huron
    SBN: 24032447
    14
    McCombs Plaza, Suite 500
    755 E. Mulberry Avenue
    San Antonio, TX 78212
    Phone: (210) 822-6666
    Fax: (210) 822-1151
    rcedillo@lawdcm.com
    ihuron@lawdcm.com
    REYNOLDS FRIZZELL LLP
    Christopher M. Hogan
    SBN: 24065434
    Nathan M. Smith
    SBN: 24053060
    1100 Louisiana Street, Suite 3500
    Houston, Texas 77002
    Phone:       (713) 485-7200
    Fax: (713) 485-7250
    chogan@reynoldsfrizzell.com
    ATTORNEYS FOR DEFENDANT-
    APPELLANT
    PETROHAWK ENERGY CORPORATION
    15
    CERTIFICATE OF CONFERENCE
    As required by Texas Rule of Appellate Procedure 10.1(a)(5), counsel for
    Appellant has conferred with counsel for Appellee about the merits of this motion.
    Appellee is opposed to a stay of proceedings in the trial court and to a stay or
    continuance of the July 2016 trial setting.
    /s/ Isaac J. Huron
    Isaac J. Huron
    CERTIFICATE OF SERVICE
    As required by Texas Rules of Appellate Procedure 6.3 and 9.5, I certify that I
    have served this document on all other parties on May 31, 2016 via email as follows:
    Gilbert T. Adams, III
    GILBERT ADAMS LAW OFFICES
    1855 Calder Avenue at Third Street
    Beaumont, TX 77704-3688
    gilbert@gta-law.com
    Fax: (409) 832-6162
    /s/ Isaac J. Huron
    Isaac J. Huron