Opinion ID: 2156289
Heading Depth: 2
Heading Rank: 5

Heading: Enforcement of the Arbitration Provision by the Service Providers

Text: [¶ 33] Stenzel and Gerber contend that even if the arbitration clause is enforceable between them and Dell, it is not enforceable as between them and the third-party service providers, BancTec and QualXServ. They assert that the service providers are not the agents, employees, successors, assigns or affiliates of any Dell entity, and they add that the separate service agreements they received directly from the service providers following their purchases do not address arbitration. Consequently, they assert the court should not have dismissed their claims against the service providers in favor of arbitration. [¶ 34] The trial court's decision granting Dell's motion to dismiss and to compel arbitration did not expressly address whether the service providers could enforce the arbitration provision; nor did Stenzel and Gerber request additional findings concerning enforcement by the service providers. [¶ 35] Before us, the parties have focused primarily on whether BancTec and QualXServ qualify as Dell's agents and, as such, can enforce the arbitration clause. We agree with Stenzel and Gerber that Dell acted as the agent of BancTec and QualXServ, and not vice versa, by contracting to provide Stenzel and Gerber extended service on their new computers. Nonetheless, we conclude that BancTec and QualXServ can enforce the arbitration provision because they are also the assigns of Dell. [¶ 36] Dell receives a single payment for both the computer and any extended service purchased by a customer and, in some instances, the obligation to provide the extended service is assumed by a service provider other than Dell. Both Stenzel and Gerber's acknowledgment forms refer to the purchase of a service contract, but neither identify the third-party service provider slated to provide the extended service. [4] [¶ 37] Because Dell's acknowledgment forms include the charges for the service contracts, and customers' payments are made directly to Dell, it can fairly be inferred that Dell remits all or a portion of the payment for the service contracts to the third-party service providers. Consequently, the service providers become Dell's assigns and, as such, are delegated Dell's duty of performance. See RESTATEMENT (SECOND) OF CONTRACTS § 317(1) (1981) (An assignment of a right is a manifestation of the assignor's intention to transfer it by virtue of which the assignor's right to performance by the obligor is extinguished in whole or in part and the assignee acquires a right to such performance.); id. § 318(1) (An obligor can properly delegate the performance of his duty to another unless the delegation is contrary to public policy or the terms of his promise.); see also TEX. BUS & COM. CODE ANN. § 2.210(b) (Vernon Supp.2004) (Unless otherwise agreed all rights of either seller or buyer can be assigned except where the assignment would materially change the duty of the other party, or increase materially the burden or risk imposed on him by his contract, or impair materially his chance of obtaining return performance.). Pursuant to the agreement's arbitration clause, any claim against Dell's assigns shall be resolved exclusively by arbitration. Accordingly, the trial court did not err in dismissing Stenzel and Gerber's claims against all of the defendants, including BancTec and QualXServ, and in granting Dell's motion to compel arbitration. The entry is: Judgment affirmed.