CHAPTER 173. ARBITRATION OF CONTROVERSIES BETWEEN MEMBERS OF CERTAIN NONPROFIT ENTITIES
CIVIL PRACTICE AND REMEDIES CODE
TITLE 7. ALTERNATE METHODS OF DISPUTE RESOLUTION
CHAPTER 173. ARBITRATION OF CONTROVERSIES BETWEEN MEMBERS OF
CERTAIN NONPROFIT ENTITIES
Sec. 173.001. PURPOSE. The purpose of this chapter is to
abrogate the common law arbitration rule prohibiting specific
enforcement of executory arbitration agreements.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.03, eff. Sept. 1,
1997.
Sec. 173.002. SCOPE OF CHAPTER. This chapter applies only to
the arbitration of a controversy between members of an
association or corporation that is:
(1) exempt from the payment of federal income taxes under
Section 501(a) of the Internal Revenue Code of 1986 by being
listed as an exempt organization under Section 501(c) of the
code; or
(2) incorporated under the Texas Non-Profit Corporation Act
(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.03, eff. Sept. 1,
1997.
Sec. 173.003. AGREEMENT OR BYLAW PROVISION VALID. (a) A
written agreement to submit a controversy to arbitration at
common law is valid and enforceable if the agreement is to
arbitrate a controversy that arises between the parties after the
date of the agreement.
(b) A party may revoke the agreement only on a ground that
exists at law or in equity for the revocation of a contract.
(c) A provision in the bylaws of a nonprofit corporation
incorporated under the Texas Non-Profit Corporation Act (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes) that requires a
member of the corporation to arbitrate at common law a
controversy that subsequently arises between members is a valid,
enforceable, and irrevocable agreement by a member of the
corporation to arbitrate the controversy.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.03, eff. Sept. 1,
1997.
Sec. 173.004. COMMON LAW PRESERVED. This chapter is cumulative
of other law relating to common law arbitration. Except as
specifically provided by this chapter, this chapter does not
abrogate or repeal that other law.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.03, eff. Sept. 1,
1997.