West Alabama Bank and Trust v. Perry County Board of Education (Appeal from Perry Circuit Court: CV-24-900004)., CL-2024-0792

The Perry County Board of Education (PCBOE) sued West Alabama Bank and Trust (the Bank) for $26,000, alleging the Bank negligently honored two fraudulent checks from the PCBOE’s bank account.
The Bank counterclaimed, citing breach of the account agreement for not reporting unauthorized checks within 60 days, and sought attorney fees and costs.
The Bank moved to compel arbitration based on a 2022 arbitration agreement, arguing interstate commerce was involved and that its litigation conduct did not waive this right.
The trial court denied the motion to compel arbitration without explanation, and the Bank appealed the denial as a matter of right.
On appeal, the court reviewed whether a valid arbitration agreement existed, whether it covered the dispute, and whether the Bank had waived its right to arbitrate by engaging in litigation.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Validity of Arbitration Agreement	Lacks consideration, mutuality, is void	Agreement valid and supported by consideration	Agreement valid; PCBOE failed to show otherwise
Scope of Arbitration Agreement	Does not cover tort claims	Broadly covers all claims, including torts	Agreement covers these claims
Involvement of Interstate Commerce	Not contested	Business relationship involved interstate commerce	PCBOE conceded issue; requirement satisfied
Waiver by Litigation Conduct	Bank invoked litigation, causing waiver	Actions were limited, no intent to abandon arbit.	No waiver; Bank did not substantially invoke

Kenworth of Dothan, Inc. v. Bruner-Wells Trucking, Inc., 745 So. 2d 271 (Ala. 1999) (sets de novo standard for review of denial of arbitration)
Elizabeth Homes, L.L.C. v. Gantt, 882 So. 2d 313 (Ala. 2003) (review and burden of proof in arbitration motion)
Fleetwood Enters., Inc. v. Bruno, 784 So. 2d 277 (Ala. 2000) (opposers must introduce evidence for unconscionability)
Voyager Life Ins. Co. v. Hughes, 841 So. 2d 1216 (Ala. 2001) (answering and discovery alone do not waive arbitration right)
African Methodist Episcopal Church, Inc. v. Smith, 217 So. 3d 816 (Ala. 2016) (participation in discovery insufficient to show waiver)