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101 So. 3d 1209
Ala. Civ. App.
2012
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Background

  • Porter Capital and Porter Bridge sought to compel arbitration of Thomas's counterclaims; circuit denied.
  • First arbitration agreement (2007) was signed only by Athlon; Thomas did not sign it.
  • Second arbitration agreement (2008) was signed by Thomas.
  • Thomas asserted multiple counterclaims, including fiduciary duties and privacy-related claims, with a jury demand.
  • Court addressed whether (a) Thomas was bound by the first agreement as a nonsignatory, (b) the second agreement covers the claims, and (c) waiver revival issues.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does the first arbitration agreement bind Thomas as a nonsignatory? Thomas is a nonparty; he cannot be bound. Thomas is a third-party beneficiary via guaranty. No; Thomas not bound by the first agreement.
Does the second arbitration agreement cover Thomas's counterclaims? Counterclaims fall within the scope of the second arbitration clause. Second agreement covers disputes between lender and borrower only. No; second agreement limited to lender-borrower disputes, not Thomas.
Are waiver revival or intertwined-claims doctrines applicable? Waiver revocation could revive arbitration rights due to new claims. Intertwined-claims theory not applicable; revival not required for result. Intertwined-claims not applicable; analysis unnecessary to resolve dispute.

Key Cases Cited

  • Polaris Sales, Inc. v. Heritage Imports, Inc., 879 So.2d 1129 (Ala. 2003) (burden shift and contract formation standard for arbitration)
  • Edwards v. Costner, 979 So.2d 757 (Ala. 2007) (third-party-beneficiary and nonsignatory arbitration)
  • Cook’s Pest Control v. Boykin, 807 So.2d 524 (Ala. 2001) (scope of arbitration and enforcing clause beyond its scope)
  • Homes of Legend, Inc. v. McCollough, 776 So.2d 741 (Ala. 2000) (presumptions and rules in determining scope of arbitration)
  • Ex parte Tony’s Towing, Inc., 825 So.2d 96 (Ala. 2002) (intertwining doctrine; estoppel when nonsignatory seeks arbitration)
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Case Details

Case Name: Porter Capital Corp. v. Thomas
Court Name: Court of Civil Appeals of Alabama
Date Published: Aug 3, 2012
Citations: 101 So. 3d 1209; 2012 Ala. Civ. App. LEXIS 202; 2012 WL 3139871; 2101203
Docket Number: 2101203
Court Abbreviation: Ala. Civ. App.
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    Porter Capital Corp. v. Thomas, 101 So. 3d 1209