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