Jury Demand Violated Contractual Waiver Of Jury Trial

The Texas Supreme Court has enforced contract language under which a borrower waived the right to a jury trial on any claim or cause of action arising from a promissory note. In re General Electric Capital Corp., 203 S.W.3d 314 (Tex. Sept. 22, 2006).

General Electric brought a non-jury action on the amount remaining unpaid on a note. The trial court originally posted the case to its non-jury docket, but at some point the borrower filed a jury demand and the court moved the case to its jury calendar. The company never received notice from the borrower of the jury demand, but it did receive forms from the court showing the jury docket was being used. Ten months after the jury demand, the company moved to strike the jury demand due to lack of notice and the violation of the contract.

The trial court denied the motion and the appellate court denied relief, but the high court granted mandamus. It found that the contractual language was conspicuous and enforce­able, that the company never waived it, and that the trial court abused its discretion in failing to enforce the contract by striking the jury demand.