Arbitration United States

Texas Court: Energy Transfer Cannot Compel Arbitration in Wrongful Death Case

Published 2026-05-22 1 source Arbitration Federal Arbitration Act Transportation Sector United States Wrongful Death United States

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TL;DR

  • Energy Transfer LP sought to compel arbitration in a wrongful death lawsuit.
  • A Texas appellate court ruled the claim exempt due to the transportation worker exemption under the Federal Arbitration Act.
  • The court cited US Supreme Court precedent regarding the exemption.
  • The family of the deceased worker will continue litigation in court, not arbitration.

Overview

The Texas Fourteenth District Court of Appeals ruled that Energy Transfer LP cannot enforce an arbitration clause in a wrongful death lawsuit filed by the family of a deceased pipeline worker. The court found the claim falls under the transportation worker exemption in the Federal Arbitration Act (FAA), based on US Supreme Court precedent.

What Happened

The family of John Purland, a deceased pipeline worker, filed a wrongful death lawsuit against Energy Transfer LP.

Energy Transfer attempted to compel arbitration based on a mandatory arbitration clause in its employment contracts.

A three-judge panel of the Texas Fourteenth District Court of Appeals ruled that the FAA's transportation worker exemption applied because Purland was engaged in interstate commerce as part of his role.

The court relied on US Supreme Court precedent clarifying that certain transportation workers are not subject to federal mandatory arbitration agreements.

Context

The Federal Arbitration Act generally allows employers to require arbitration of employment-related disputes. However, there is a specific exemption for transportation workers engaged in interstate commerce.

Recent US Supreme Court decisions have clarified the scope of this exemption, which influenced the Texas court's decision.

Why It Matters

  • This ruling affirms that employers in the transportation sector may not always enforce arbitration clauses for employees covered by the FAA exemption.
  • Affected workers can pursue claims in public courts rather than confidential arbitration, based on their work's relationship to interstate commerce.

Sources

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