PER CURIAM.
A party waives its right to arbitration by substantially invoking the judicial process to the other party's detriment or prejudice. Proving waiver is a high hurdle due to the strong presumption against waiver of arbitration. This appeal concerns whether a law firm waived its right to arbitrate a fee dispute with former clients by litigating with a former associate. After the associate left the firm and took several clients with him, the firm sued the
Ventura Gobellan was driving an armored car for his employer when the vehicle became unstable and rolled over, killing a passenger and injuring Gobellan. Gobellan and his wife retained Kennedy Hodges, L.L.P. to defend against a wrongful death suit and to bring suit against Gobellan's employer and other defendants (the Gobellan Suit). The Gobellans agreed to pay Kennedy Hodges forty percent of the gross recovery obtained after suit was filed but before trial. Their fee agreement provided that the Gobellans would be liable for the entire contingency fee if they terminated Kennedy Hodges without cause and required the Gobellans and Kennedy Hodges to arbitrate any fee dispute. Kennedy Hodges assigned associate attorney Canonero Brown to the case.
Brown subsequently left Kennedy Hodges and assured Gobellan "he would work out a fee splitting arrangement with Kennedy Hodges and that [they] would not be affected." The Gobellans retained Brown to represent them. Kennedy Hodges sued Brown to recover contingency fees for former clients he took with him (the Brown Suit). The Gobellans were not a party to that suit. Kennedy Hodges later settled with Brown for a portion of all contingency fees collected from former firm clients who retained Brown, including the Gobellans.
In the Gobellan Suit, Gobellan's employer and the Gobellans submitted their dispute to arbitration. The Gobellans obtained an award that was confirmed in a final judgment, which Gobellan's employer satisfied by paying $470,000. Kennedy Hodges sued the Gobellans in a separate proceeding, and moved for a no-answer default judgment. But after conferring with the Gobellans, Kennedy Hodges pursued its claim in the Gobellan Suit by intervening and moving to compel arbitration. The trial court denied the motion, and the court of appeals affirmed, concluding that Kennedy Hodges substantially invoked the litigation process as to the Gobellan fee based on the discovery it conducted in the Brown Suit. 433 S.W.3d 579, 585. The court also found the Gobellans established prejudice because Kennedy Hodges attempted to "have it both ways" by switching between litigation and arbitration. Id. at 585. As we explain below, the court of appeals' decision conflicts with our decision in Perry Homes v. Cull, 258 S.W.3d 580 (Tex.2008), on a question of law material to the disposition of the case, which confers jurisdiction on this Court over this interlocutory appeal, TEX. CIV. PRAC. & REM.CODE § 171.098(a)(1); TEX. GOV'T CODE §§ 22.001(a)(2), 22.225(c).
The Gobellans argue Kennedy Hodges's litigation in the Brown Suit substantially invoked the litigation process against them. Kennedy Hodges counters that the Brown Suit contained tort and contract claims not involving the Gobellans as parties. We agree with Kennedy Hodges.
Two cases in particular illuminate how we apply this standard. First, in Cull, the Culls substantially invoked the litigation process by initially resisting the opposing party's motion to compel arbitration, filing motions to compel discovery, conducting extensive discovery about every aspect of the merits, and waiting until shortly before trial to request arbitration. Id. at 595-97. There, we specifically emphasized the extreme delay the Culls caused, which we noted undercuts one of the prime benefits of arbitration: an expedient and cost-effective dispute resolution process. Id. at 596. Additionally, our statement that waiver occurs when a party substantially invokes litigation with "the other party[]" indicates the party claiming waiver was the other party in the litigation. Id. at 590.
More relevant to our inquiry here, we held in In re Service Corp. International that a party who litigated one claim with an opponent did not substantially invoke the litigation process for a related yet distinct claim against another party with whom it had an arbitration agreement. 85 S.W.3d 171, 175 (Tex.2002).
Here, Kennedy Hodges's litigation with Brown in the Brown Suit did not substantially invoke the litigation process with the Gobellans, who were not parties to the Brown Suit. The Brown Suit involved alleged breaches of Brown's employment agreement with Kennedy Hodges as well as tort claims. And there was no arbitration agreement between Kennedy Hodges and Brown. By contrast, the Gobellan Suit involved an alleged breach of the Gobellans' contingency fee agreement with Kennedy Hodges, which contains an arbitration clause. By litigating with Brown, Kennedy Hodges did not litigate with the Gobellans. Our holding in Service Corp. International, compels this conclusion. Id. Additionally, Kennedy Hodges's litigation with Brown did not prejudice the Gobellans as it did not cause delay, expense, or damage to the Gobellans' legal position. See Cull, 258 S.W.3d at 597.
Likewise, we cannot agree that Kennedy Hodges substantially invoked the litigation process with its pleadings against the Gobellans. Kennedy Hodges filed pleadings against the Gobellans in two suits. First, Kennedy Hodges initiated litigation against the Gobellans in a separate proceeding in Harris County and filed a motion for a no-answer default judgment. But these pleadings alone do not rise to the level required to show waiver. See, e.g., id. at 592 (assessing whether a party
To conclude, Kennedy Hodges's litigation conduct involved suing a third party with whom it had no arbitration agreement and filing limited pleadings against the Gobellans. Such activity did not substantially invoke the litigation process against the Gobellans or prejudice them. Thus, Kennedy Hodges did not waive its right to arbitrate its dispute with the Gobellans. Accordingly, without hearing oral argument, TEX.R.APP. P. 59.1, we grant the petition for review, reverse the court of appeals' judgment, and remand to the trial court to grant Kennedy Hodges's motion to compel arbitration.