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Arbitration good?

The Supreme Court of Texas has made enforcing arbitration clauses super-easy. But what happens if the arbitration produces an outcome that may give the conservative Court pause — a $125 million award in favor of the claimant, for instance?

A case that the Court decided last week poses that lurking question. And regrettably their honors answered the

A hedge fund that bought pieces of loans to a Texas corporation sued the borrower's directors. The hedge fund alleged breach of fiduciary duty. But it didn't claim that the firm had ceased operations.

The hedge fund argued in response to the directors' motion to dismiss that the absence of such a charge didn't matter.