In Re Palacios

Olga Palacios filed suit against several individuals and companies when her attempt to buy a duplex in Austin fell through. One of those defendants, Mortgages Direct, moved to compel arbitration based on an agreement providing that all disputes relating to its agreement with Palacios “shall be submitted for binding arbitration.” The trial court granted the motion, and the Third Court of Appeals denied mandamus relief. We too deny relief, but write to recognize a change in accordance with developments in federal law.

At the hearing on the motion to compel arbitration, Mortgages Direct offered…