Rsl Funding, LLC and Rsl Special-Iv Limited Partnership v. Rickey Newsome , 569 S.W.3d 116 ( 2018 )


Menu:
  •                 IN THE SUPREME COURT OF TEXAS
    444444444444
    NO. 16-0998
    444444444444
    RSL FUNDING, LLC AND RSL SPECIAL-IV LIMITED PARTNERSHIP, PETITIONERS,
    v.
    RICKEY NEWSOME, RESPONDENT
    4444444444444444444444444444444444444444444444444444
    ON PETITION FOR REVIEW FROM THE
    COURT OF APPEALS FOR THE FIFTH DISTRICT OF TEXAS
    4444444444444444444444444444444444444444444444444444
    Argued October 9, 2018
    JUSTICE DEVINE delivered the opinion of the Court.
    The Structured Settlement Protection Act requires court approval to validate the transfer of
    a payee’s structured-settlement-payment rights to another. TEX. CIV. PRAC. & REM. CODE § 141.004.
    The court here approved the transfer but did so in two different orders, creating a dispute between
    the parties over which order should control. One of the parties moved to compel arbitration of this
    dispute and others under an arbitration provision included in their transfer agreement. The trial court
    denied the motion, and the court of appeals affirmed, concluding that the dispute over which order
    controlled was not an arbitrable issue despite the existence of an arbitration agreement that assigned
    issues of arbitrability to the arbitrator. 
    559 S.W.3d 169
    , 175 (Tex. App.—Dallas 2016) (mem. op.).
    Because the parties agreed to have the arbitrator decide issues of arbitrability, we conclude that the
    court of appeals erred in determining that the dispute here was one that could not be arbitrated.
    Accordingly, we reverse the court of appeals’ judgment and remand the case to the trial court with
    instructions to grant the motion to compel arbitration.
    I
    Rickey Newsome settled a personal injury suit several decades ago and has since received
    structured settlement payments from Allstate Insurance Company. RSL Funding and its related
    entities offer lump-sum payments to purchase structured-settlement agreements from recipients like
    Newsome. Newsome assigned 120 monthly payments of varying amounts to RSL in exchange for
    a payment of $53,000. Their contract included a mandatory arbitration clause that identified the
    Federal Arbitration Act as the controlling law. The clause delegates to an arbitrator not only
    contractual disputes but also whether a dispute is arbitrable. The relevant part reads:
    Disputes under this Agreement of any nature whatsoever . . . shall be resolved through
    demand by any interested party to arbitrate the dispute. . . . The parties hereto agree
    that the issue of arbitrability shall likewise be decided by the arbitrator, and not by
    any other person. That is, the question of whether a dispute itself is subject to
    arbitration shall be decided solely by the arbitrator and not, for example by any court.
    Under the Structured Settlement Protection Act, a court must approve a transfer of structured-
    settlement payments before the transfer is effective. TEX. CIV. PRAC. & REM. CODE § 141.004. The
    court that approves the transfer is the court of original jurisdiction that authorized the settlement. 
    Id. § 141.002(2)(A).
    But if the original court no longer has jurisdiction, approval must be sought from
    a district court or other designated court in the payee’s county. 
    Id. § 141.002(2)(B).
    Because the
    original court signed the judgment on the structured settlement decades before this transfer, it no
    longer retained jurisdiction, and so RSL petitioned a district court in Newsome’s resident county to
    approve the agreement.
    2
    The district court signed an order approving the transfer that included the requisite statutory
    findings. See 
    id. § 141.004
    (stating the “express findings” the court must make to approve the
    transfer). The order, however, included an additional requirement in a handwritten note by the judge
    that provided: “Transferee to pay Mr. Newsome the sum of $53,000 in 10 days from this order being
    signed or transferee will be required to pay Mr. Newsome $106,000.” The transferee did not pay the
    $53,000 within the allotted ten days.
    Seven months later, Newsome wrote a letter to the judge complaining that he had not been
    paid. The district court responded by ordering the parties to mediation, which resulted in an agreed
    motion to remove the ten-day payment penalty from the order approving the transfer. The court
    granted the motion and issued a corrected order nunc pro tunc.
    After several more months passed without payment, Newsome filed a new pleading in the
    district court, titled “Original Petition for Bill of Review and Application for Injunctive Relief.” This
    pleading attacked both the original and nunc pro tunc approval orders. Newsome argued the nunc
    pro tunc order was void because it corrected a judicial error after the expiration of the court’s plenary
    power. He further asserted that the court’s original transfer order therefore remained in full force and
    effect and subject to enforcement. But Newsome also asked the district court, in the alternative, to
    vacate the original approval order, although he did not assert a basis for doing so or specifically
    request that relief in the bill of review’s prayer. A subsequent motion for summary judgment
    elaborated on the basis for Newsome’s alternative request, asserting that the original transfer order
    should be vacated because RSL had not complied with it. RSL responded that it had not yet paid
    Newsome because of his refusal to accept the agreed purchase price of $53,000 and his failure to
    3
    cooperate in transferring the settlement payments to RSL. RSL moved to compel arbitration of the
    dispute under the parties’ contract, while Newsome pursued his motion for summary judgment.
    The district court granted Newsome’s summary judgment motion in part, declaring the nunc
    pro tunc order void, but the court did not decide whether the original transfer order should also be
    set aside.   Instead, the court reserved judgment on Newsome’s alternative claim for future
    proceedings. The court also denied RSL’s motion to compel arbitration.
    RSL took an interlocutory appeal from the district court’s order denying arbitration. See TEX.
    CIV. PRAC. & REM. CODE § 51.016 (authorizing interlocutory appeal). In a divided decision, the
    court of appeals affirmed the district court’s order, reasoning that Newsome’s bill of review, which
    challenged the approval orders’ validity, offered “nothing for an arbitrator to determine” because
    approval of such transfers under the Structured Settlement Protection Act was a “purely judicial
    
    function.” 559 S.W.3d at 175
    . A dissenting justice disagreed, arguing that the parties had agreed to
    arbitrate all matters raised in Newsome’s bill of review, including whether the nunc pro tunc order
    was effective and whether the penalty added by the trial court properly altered the parties’ transfer
    agreement. 
    Id. at 176
    (Schenck, J., dissenting).
    RSL petitioned this Court to review the order denying arbitration, and we granted its petition.
    II
    The U.S. Supreme Court has explained that there are three types of disagreements in the
    arbitration context: (1) the merits of the dispute; (2) whether the merits are arbitrable; and (3) who
    decides the second question. First Options of Chi., Inc. v. Kaplan, 
    514 U.S. 938
    , 942 (1995). The
    default rule for the third question is that arbitrability is a threshold matter for the court to decide.
    4
    Forest Oil Corp. v. McAllen, 
    268 S.W.3d 51
    , 61 (Tex. 2008). But a contractual agreement to submit
    the arbitrability question to an arbitrator is valid and must be treated like any other arbitral agreement.
    First 
    Options, 514 U.S. at 943
    . Arbitration clauses that assign gateway questions such as the
    arbitrability of the dispute are an established feature of arbitration law. Rent-A-Ctr., W., Inc. v.
    Jackson, 
    561 U.S. 63
    , 68–69 (2010). This Court, too, has held that courts must enforce a valid
    arbitration agreement that places arbitrability with the arbitrator rather than a court. Forest 
    Oil, 268 S.W.3d at 61
    .
    RSL contends that the court of appeals impermissibly decided arbitrability itself in the face
    of a valid arbitration clause that explicitly assigns arbitrability disputes to the arbitrator. Newsome
    does not challenge the validity or effect of the arbitration clause itself. He contends that the
    arbitration clause is inapplicable here because this dispute must be decided by a court due to the bill
    of review and Structured Settlement Protection Act context. He also submits that under the
    Structured Settlement Protection Act no binding agreement (including an arbitration provision
    therein) exists until a court resolves the present dispute regarding the validity of the approving court’s
    order.
    The dispute thus presents two legal questions for us to decide. First, does an arbitral
    delegation clause in a court-approved structured settlement transfer agreement apply when the
    validity of the approving court order is at issue? The court of appeals held it does 
    not. 559 S.W.3d at 175
    . Second, does a dispute about the validity of approving court orders under the Structured
    Settlement Protection Act affect the existence of an enforceable arbitration agreement? The court
    5
    of appeals did not answer this question. Our review of these legal determinations is, of course, de
    novo. Forest 
    Oil, 268 S.W.3d at 55
    & n.9.
    III
    We first consider the court of appeals’ conclusion and Newsome’s arguments that the case
    should not be sent to arbitration because of its unique circumstances–a bill of review attacking
    approving court orders under the Structured Settlement Protection Act. RSL argues that because the
    parties agreed to delegate arbitrability to the arbitrator the weight of authority required the dispute
    be sent to arbitration. We agree.
    A
    A valid arbitration agreement creates a strong presumption in favor of arbitration. Rachal v.
    Reitz, 
    403 S.W.3d 840
    , 850 (Tex. 2013). Both Texas and federal law require the enforcement of valid
    agreements to arbitrate. 9 U.S.C. § 2; TEX. CIV. PRAC. & REM. CODE § 171.021. Arbitrators are
    competent to decide any legal or factual dispute the parties agree to arbitrate. 14 Penn Plaza LLC
    v. Pyett, 
    556 U.S. 247
    , 268–69 (2009); Shearson/American Exp., Inc. v. McMahon, 
    482 U.S. 220
    , 232
    (1987). Generally, a court may consider an arbitration agreement’s terms to determine which issues
    must be arbitrated. Forest 
    Oil, 268 S.W.3d at 61
    . But as parties have a right to contract as they see
    fit, they may agree to arbitral delegation clauses that send gateway issues such as arbitrability to the
    arbitrator. 
    Rent-A-Ctr., 561 U.S. at 68
    –70; Forest 
    Oil, 268 S.W.3d at 61
    & n.38. When faced with
    such an agreement, courts have no discretion but to compel arbitration unless the clause’s validity
    is challenged on legal or public policy grounds. Forest 
    Oil, 268 S.W.3d at 61
    . So the proper
    procedure is for a court to first determine if there is a binding arbitration agreement that delegates
    6
    arbitrability to the arbitrator. If there is such an agreement, the court must then compel arbitration
    so the arbitrator may decide gateway issues the parties have agreed to arbitrate. See 
    id. The court
    of appeals, however, did not limit its inquiry to the existence of a valid arbitration
    agreement; it instead refused arbitration based on its own determination of the arbitrability of the
    dispute. It did this apparently because “the unique facts of this case” permitted it to disregard the
    parties’ agreement. 
    See 559 S.W.3d at 175
    .
    Newsome defends the court of appeals’ decision, contending that the court must decide the
    issues presented in his bill of review because the court has exclusive jurisdiction to hear this direct
    attack on its prior final judgment. See Richards v. Comm’n for Lawyer Discipline, 
    81 S.W.3d 506
    ,
    508 (Tex. App.—Houston [1st Dist.] 2002, no pet.) (dismissing a bill of review because it was not
    filed in the court that rendered the judgment under attack). He further relies on authorities explaining
    that a court’s subject matter jurisdiction comes from operation of law and cannot be created by
    consent. See Dubai Petroleum Co. v. Kazi, 
    12 S.W.3d 71
    , 76 (Tex. 2000); Fed. Underwiters Exch.
    v. Pugh, 
    174 S.W.2d 598
    , 600 (Tex. 1943). Combining these disparate authorities, Newsome
    concludes that the district court’s jurisdiction is not only to the exclusion of other courts, but also to
    the exclusion of arbitration.
    Unlike Richards, Newsome’s bill of review was not filed in the wrong court, and none of
    Newsome’s authorities concern arbitration or have any apparent application here. That a court has
    jurisdiction over a bill of review to the exclusion of all other courts does not speak to the issue of
    arbitrability. Arbitrators derive their jurisdiction over disputes from parties’ consent and the law of
    contract. Volt Info. Scis., Inc. v. Bd. of Trs. of Leland Stanford Jr. Univ., 
    489 U.S. 468
    , 479 (1989);
    7
    Americo Life, Inc. v. Myer, 
    440 S.W.3d 18
    , 21 (Tex. 2014). The Federal Arbitration Act preempts
    any state law that would interfere with parties’ freedom to contract to arbitrate their disputes.
    Kindred Nursing Ctrs. Ltd. P’ship v. Clark, 
    137 S. Ct. 1421
    , 1426 (2017); In re Olshan Found.
    Repair Co., 
    328 S.W.3d 883
    , 888 (Tex. 2010). Reading grants of exclusive jurisdiction over a matter
    to a court to prohibit delegation of the matter to an arbitrator misunderstands arbitration and the
    preemptive effect of the Federal Arbitration Act.
    Moreover, we have held that parties may contract to arbitrate issues even when the law vests
    some related exclusive power in a court. For example, in CVN Group, Inc. v. Delgado the parties
    signed an expansive arbitration agreement as part of a contract for construction of a home. 
    95 S.W.3d 234
    , 235 (Tex. 2002). After the buyers breached the contract, an arbitrator awarded the home builder
    damages and a mechanic’s lien on the home. 
    Id. The trial
    court refused to allow foreclosure on the
    lien and the court of appeals affirmed, reasoning the Constitution and Property Code’s requirement
    that mechanic’s liens be foreclosed by judicial action also required judicial review and approval of
    mechanic’s liens. 
    Id. at 236–37.
    We reversed, holding the arbitrator-awarded lien could be enforced
    because it did not contravene constitutional and statutory protections. 
    Id. at 239.
    The dissent
    reasoned the mechanic’s lien statute’s requirement that “[a] mechanic’s lien may be foreclosed only
    on judgment of a court” meant arbitrators could not decide disputes on underlying issues involving
    a lien’s existence. 
    Id. at 247–48
    (Hankinson, J., dissenting). The Court disagreed, however,
    concluding this requirement did not prevent arbitration of issues related to the existence of a
    mechanic’s lien. See 
    id. at 239–40.
    8
    Newsome’s argument echoes the dissent in CVN Group. Newsome contends that because the
    Structured Settlement Protection Act requires a court to approve the transfer of structured-settlement-
    payment rights, and because only the original court has jurisdiction to decide a bill of review
    attacking its final approval order, the issues raised in this context cannot be decided by an arbitrator.
    But as with the mechanic’s lien in CVN Group, we find no inconsistency here between the statute’s
    requirement that courts approve structured-settlement transfers and the arbitration of issues related
    to that approved transfer. Just as in CVN Group where the statute assigned foreclosure on mechanic’s
    liens to a court, here the Legislature has assigned approval of structured-settlement transfers to the
    courts. TEX. CIV. PRAC. & REM. CODE § 141.004. As was the case with the mechanic’s liens statute
    in CVN Group, the Structured Settlement Protection Act does not speak to arbitration at all. See
    
    id. §§ 141.001–007.
    While the statute requires a court to approve a settlement-payment transfer, it
    is silent as to who should decide disputes that arise after such approval, including disputes that
    require application of the court order itself. See 
    id. In the
    face of such silence, we must apply the
    general rule that arbitrators are competent to decide any type of dispute. See 14 Penn Plaza LLC v.
    Pyett, 
    556 U.S. 246
    , 268–69 (2009). Even if the statute prohibited arbitration of certain disputes that
    would arise from the approval of structured-settlement transfers, the Federal Arbitration Act would
    preempt such a restraint on the freedom of contract in arbitration. See 
    Olshan, 328 S.W.3d at 888
    .
    Here, the courts below have not questioned the validity of parties’ arbitration clause. We thus
    have no choice but to send this dispute to arbitration for the arbitrator to at least decide arbitrability.
    Accordingly, the court of appeals erred in affirming the trial court’s refusal to compel arbitration on
    the grounds that the dispute in this case was not arbitrable.
    9
    B
    RSL urges us to go further and read the court of appeals’ decision as applying the “wholly
    groundless” exception and to explicitly reject such an exception in Texas. The wholly groundless
    exception is a doctrine applied by some federal appellate courts to deny arbitration even in the face
    of an arbitral delegation clause.1 Under the wholly groundless exception, the court may decline to
    enforce an arbitral delegation clause when no reasonable argument exists that the parties intended
    the arbitration clause to apply to the claim before it. Turi v. Main St. Adoption Servs., LLP, 
    633 F.3d 496
    , 507 (6th Cir. 2011). Here, the court of appeals concluded that the dispute over the validity of
    the court’s approval orders was “not relevant” and “had no bearing” on the parties’ arbitrable
    disputes. 559 S.W.3d. at 175. RSL contends that this was in effect an adoption of the wholly
    groundless exception.
    But the court of appeals does not mention the exception or discuss the federal cases that apply
    it. Nor has Newsome asked us to adopt the exception or any similar “relevance test” to deny
    enforcement of an otherwise valid arbitration agreement. The court of appeals did not refuse to
    enforce arbitration because it thought there was no reasonable argument that the arbitration
    agreement covered the parties’ dispute. It refused to enforce arbitration because it decided this case
    offered “nothing for an arbitrator to determine.” 
    Id. In other
    words, the court decided the nature of
    the dispute made it non-arbitrable. It erred by skipping the first step in which it should have
    considered whether it could decide arbitrability in the face of the arbitral delegation clause. This
    1
    The Fifth, Sixth and Federal Circuits apply the exception. See, e.g., Douglas v. Regions Bank, 
    757 F.3d 460
    ,
    462 (5th Cir. 2014); Turi v. Main St. Adoption Servs., LLP, 
    633 F.3d 496
    , 507 (6th Cir. 2011); Qualcomm Inc. v. Nokia
    Corp., 
    466 F.3d 1366
    , 1371 (Fed. Cir. 2006). The Tenth and Eleventh Circuits have explicitly rejected it. Jones v. Waffle
    House, Inc., 
    866 F.3d 1257
    , 1269 (11th Cir. 2017); Belnap v. Iasis Healthcare, 
    844 F.3d 1272
    , 1286 (10th Cir. 2017).
    10
    skipped step is where the wholly groundless exception would come into play if the court of appeals
    had intended to apply it. We conclude the validity of a wholly groundless exception or similar
    relevance test is not properly before us. We need not go any further than to hold the court of appeals
    erred by deciding arbitrability itself.
    IV
    Because it decided the case on arbitrability grounds, the court of appeals did not address
    Newsome’s arguments that the agreement and thus the arbitration clause never came into effect or
    was unenforceable. As explained above, this was error; the court should have first decided whether
    a valid arbitration agreement exists. When presented with an issue the court of appeals could have
    but did not decide, we may either remand the case or consider the issue ourselves. TEX. R. APP. P.
    53.4. We choose to decide this issue.
    Newsome argues no enforceable arbitration agreement exists here because both of the district
    court’s approval orders were void. In doing so, he relies on two cases that hold structured-settlement-
    transfer agreements are not validly formed or enforceable without court approval. See Wash. Square
    Fin., LLC v. RSL Funding, LLC, 
    418 S.W.3d 761
    , 770 (Tex. App.—Houston [14th Dist.] 2013, pet.
    denied); In re Rapid Settlements, Ltd., 
    202 S.W.3d 456
    , 461 (Tex. App.—Beaumont 2006, orig.
    proceeding [mand. denied]) (per curiam). Under this logic, Newsome argues that he cannot be
    compelled to arbitrate under the agreement either because the agreement never took effect without
    a valid court order or because the agreement cannot be enforced for some other reason such as being
    contrary to public policy.
    11
    There are three distinct ways to challenge the validity of an arbitration clause: (1) challenging
    the validity of the contract as a whole; (2) challenging the validity of the arbitration provision
    specifically; and (3) challenging whether an agreement exists at all. In re Morgan Stanley & Co.,
    
    293 S.W.3d 182
    , 187 (Tex. 2009). These distinctions arise from the U.S. Supreme Court decision
    Prima Paint Corp. v. Flood & Conkling Manufacturing Co., which held that arbitration clauses are
    separable from the contracts in which they are embedded. 
    388 U.S. 395
    , 404 (1967). Because an
    arbitration clause is separable from the rest of the contract, the arbitrator decides the first type of
    challenge. Rent-A-Ctr., W., Inc. v. Jackson, 
    561 U.S. 63
    , 70 (citing Prima 
    Paint, 388 U.S. at 403
    –04). Classic contract defenses such as unconscionability, illegality and fraudulent inducement
    fall under this first type of challenge; the arbitrator decides them if they are alleged only against the
    contract as a whole. E.g., 
    id. at 66
    (unconscionability); Buckeye Check Cashing, Inc. v. Cardegna,
    
    546 U.S. 440
    , 443 (illegality); Prima 
    Paint, 338 U.S. at 402
    –04 (fraudulent inducement). But Prima
    Paint does not encompass contract-formation challenges. Morgan 
    Stanley, 293 S.W.3d at 187
    –88
    & nn. 5–6. Contract formation defenses—such as whether a party ever signed a contract, whether a
    signor had authority to bind a principal, or whether the signor had capacity to assent—are thus
    threshold issues to be decided by the court. 
    Id. at 189.
    This is because the Federal Arbitration Act
    requires a court to be “satisfied that the making of the agreement for arbitration . . . is not in issue”
    before compelling arbitration. 9 U.S.C. § 4. The Texas Arbitration Act, too, requires that the
    existence of an agreement to arbitrate be proven to the court before the court must compel arbitration.
    TEX. CIV. PRAC. & REM. CODE § 171.021(b).
    12
    Here, Newsome does not challenge the arbitration clause specifically. Rather, he contends
    that no enforceable arbitration agreement exists because the entire transfer agreement never came into
    existence or is not enforceable. Under the Structured Settlement Protection Act, “[n]o direct or
    indirect transfer of structured settlement payment rights shall be effective . . . unless the transfer has
    been approved in advance in a final court order” based on specified express findings. TEX. CIV.
    PRAC. & REM. CODE § 141.004. Assuming for the sake of argument that this provision requires the
    court to approve the parties’ contract and not merely the structured-settlement-payment transfer, the
    effect of this provision on the arbitration clause depends on whether the challenge is to the contract’s
    enforceability or its existence. Newsome cites cases that discuss the statute’s effect on both the
    structured-settlement-transfer agreement’s existence and its enforceability. See, e.g., Wash. 
    Square, 418 S.W.3d at 770
    (enforceability); Rapid 
    Settlements, 202 S.W.3d at 461
    (formation).
    For example, in Washington Square, the court of appeals held that contracts to transfer
    structured-settlement-payment rights are unenforceable as contrary to public policy unless court-
    
    approved. 418 S.W.3d at 770
    . The court, however, did not decide whether court approval is a
    condition precedent to the formation of the contract. 
    Id. at 771
    & n.8. The case did not involve a
    motion to compel arbitration; the issue was whether an unapproved contract could support a tortious-
    interference claim. 
    Id. at 770–71.
    Washington Square is not helpful here because the court did not
    consider whether the lack of court approval rendered the transfer agreement a nullity.
    In the arbitration context, the Prima Paint separability doctrine provides that the arbitrator
    is to decide any challenge to the enforceability of an existing 
    contract. 388 U.S. at 404
    . Any contract
    defense that attacks the contract as a whole but does not go to the issue of contract formation must
    13
    be decided by the arbitrator. See, e.g., 
    Rent-A-Ctr., 561 U.S. at 66
    (unconscionability); 
    Buckeye, 546 U.S. at 443
    (illegality); Prima 
    Paint, 338 U.S. at 402
    -04 (fraudulent inducement). Voidness on
    public policy grounds as in Washington Square may provide a basis for revoking an existing contract
    but does not mean the agreement never formed in the first place. See In re Poly-America, L.P., 
    262 S.W.3d 337
    , 348 (Tex. 2008) (orig. proceeding). Because voidness on public policy grounds, like
    illegality, is a defense to the contract’s enforcement, it falls into the category that the Prima Paint line
    of cases delegates to the arbitrator. See 
    Buckeye, 456 U.S. at 446
    . Consequently, when a party
    resisting arbitration argues the whole contract is void for violation of public policy, the arbitrator, not
    a court, decides the issue. We thus cannot decide here whether a transfer agreement lacking court
    approval under section 141.004 is void on public policy grounds or unenforceable for any other
    reason that does not go to contract formation because the doctrine of separability reserves such
    decisions for the arbitrator.
    Newsome, however, also argues that section 141.004 of the Structured Settlement Protection
    Act creates a condition precedent to contract formation. That indeed was the holding of a court of
    appeals in another case Newsome cites. See Rapid 
    Settlements, 202 S.W.3d at 461
    . Assuming that
    holding to be correct, a court would have an opportunity to decide at the outset whether a valid court
    order approved a structured-settlement-transfer agreement because the existence of the court order
    goes to contract formation, which the court decides before compelling arbitration. See Morgan
    
    Stanley, 293 S.W.3d at 187
    . Whether we may decide in this appeal if court approval is an issue of
    the underlying contract’s formation depends on whether Newsome properly raised that issue below.
    14
    The primary thrust of Newsome’s bill of review was for the trial court to declare the nunc pro
    tunc order void so Newsome could enforce the original approval order. Because Newsome’s bill of
    review pleads that the approval order is valid and created an enforceable contract, the possible
    voidness of the nunc pro tunc order does not affect the existence of the agreement to arbitrate. The
    contract containing the agreement to arbitrate exists even if a question exists about whether the nunc
    pro tunc order corrected only a clerical error. Newsome seeks to enforce a contract approved by a
    court that contains an arbitration agreement and thereby concedes the existence of the agreement to
    arbitrate.
    But Newsome’s bill of review contains an “alternative” allegation that both the nunc pro tunc
    order and the original approval order are void, and Newsome mentions that possibility again in his
    appellate briefing without explanation. In fact, Newsome has no theory to support his conclusory
    attack on the original order. He did not even raise the issue in his trial court brief opposing RSL’s
    motion to compel arbitration. Indeed, Newsome’s petition for bill of review barely mentions the
    possibility, and his briefing in this Court is no better. A brief must provide citations or argument and
    analysis for the contentions and failure to do this can result in waiver. TEX. R. APP. P. 38.1(i),
    38.2(a)(1); Ross v. St. Luke’s Episcopal Hosp., 
    462 S.W.3d 496
    , 500 (Tex. 2015). Newsome has
    failed to present any theory, analysis, or authority that puts the validity of the original approval order
    and thus formation of the contract to arbitrate in issue, and we conclude that the doctrine of
    separability reserves to the arbitrator all other questions raised in the district court. The court of
    appeals therefore erred in affirming the trial court’s order denying arbitration.
    *****
    15
    Having found the court of appeals erred and no merit in Newsome’s alternative grounds to
    affirm, we reverse the court of appeals’ judgment and remand the case to the trial court with
    instructions to grant the motion to compel arbitration.
    ______________________________
    John P. Devine
    Justice
    Opinion Delivered: December 21, 2018
    16