OPINION
Plaintiff/appellant Robert Dusold (Du-sold) filed a negligence and products liability action against defendant/appellee Por-ta-John Corporation (Porta-John) and others, alleging that he suffered personal injuries from chemicals supplied by Porta-John. Porta-John moved to dismiss the complaint on the ground that an arbitration clause in the parties’ contract divested the trial court of subject matter jurisdiction over the action.
FACTS AND PROCEDURAL BACKGROUND
In 1985, Dusold began servicing and cleaning Porta-John’s portable toilets in Phoenix under a licensing agreement. The Service Contract Agreement (contract), drafted by Porta-John, contained a provision requiring arbitration in Michigan of “any controversy or claim arising out of, or relating to this agreement, or the breach thereof.”
Pursuant to this contract, Porta-John supplied Dusold with all chemicals required to clean and service the toilets. After several months, Dusold allegedly suffered injury from exposure to these chemicals. On December 31, 1986, Dusold filed a complaint against Porta-John and others, 1 alleging that Porta-John failed to warn him of the dangerous and toxic nature of these chemicals and also failed to provide him with adequate instructions for their safe use.
Porta-John moved to dismiss Dusold’s complaint pursuant to Rule 12(b)(1) and (6), Arizona Rules of Civil Procedure, contending that, as a result of the arbitration provision, arbitration in Michigan was Du-sold’s exclusive remedy for his personal injury tort claim and that, therefore, Du-sold’s complaint failed to state a claim upon which relief could be granted by an Arizona state court. In that same motion, Porta-John asked for an order compelling arbitration and staying judicial proceedings pursuant to A.R.S. § 12-1502.
In its minute entry following the hearing on Porta-John’s motion, the trial court expressed “some doubts about the fairness of compelling an Arizona Plaintiff in a multi-defendant tort case to arbitrate in Michigan his claim against the primary defendant.” Nevertheless, the court found that Du-sold’s claims “ar[o]se out of or relat[ed] to ... his agreement with Defendant Porta-John; they [were] for personal injuries Plaintiff received while performing on that agreement.” The court further found that both statute and case law required that all issues be resolved in favor of arbitration. The court granted Porta-John’s motion, entered judgment dismissing all claims against Porta-John, and ordered the parties to arbitrate those claims according to the terms of their contract. The judgment, which had been prepared and submitted by Porta-John and which conformed to the court’s minute entry order, contained Rule 54(b) language that the court found “no just reason for delay in entry of the judgment of dismissal as to defendant Porta-John.” See Rule 54(b), Arizona Rules of Civil Procedure.
Dusold timely appealed from that judgment, claiming:
(1) that the arbitration clause in the contract applied only to contract disputes and not to personal injury tort claims;
(2) that even if the clause was found to be broad enough to include personal injury claims, application of it to Du-sold’s personal injury claim abrogated his *360 constitutional right to recover damages in a trial by jury in Arizona; and
(3) that, even if the arbitration agreement was valid as to Dusold’s personal injury claims and did not violate his constitutional rights, then either (a) the superior court did not have power to compel arbitration in another state, or (b) it was unreasonable in this case, and/or against the public policy of Arizona, to require arbitration in Michigan.
On January 17, 1989, along with its answering brief, Porta-John filed a motion to dismiss the appeal on the ground that an order compelling arbitration is a nonappealable, interlocutory order under
Roeder v. Huisk,
JURISDICTION
Porta-John asserts that an order of the trial court compelling arbitration is interlocutory and therefore not appealable pursuant to A.R.S. § 12-2101.01 2 and Roeder v. Huish.
Dusold argues that the order challenged here resulted in a judgment dismissing all claims against Porta-John, while the order in Boeder was simply an order granting the defendant’s application for arbitration and for stay of proceedings pending arbitration, and, thus, Boeder is distinguishable. Further, Dusold points out, the court specifically included Rule 54(b) language in its judgment and left no claims pending before the trial court as to Porta-John. The judgment, submitted by Porta-John and adopted in full by the court, states in pertinent part:
1. All claims against defendant Por-ta-John corporation are dismissed and defendant Porta-John is dismissed from this action.
2. The parties are ordered to arbitrate those claims in the State of Michigan according to the terms of their contract.
3. There is no just reason for delay in entry of judgment as to defendant Por-ta-John.
Porta-John argues that an order to arbitrate is by its nature interlocutory, and the trial court cannot transform it into a final order simply by incorporating it within a final judgment. Thus, Porta-John asks this court to either dismiss the appeal because of the intrinsically interlocutory nature of the arbitration order or to remand to the trial court for issuance of an order compelling arbitration and staying proceedings pending the outcome of arbitration.
We begin our analysis with a comparison of the proceedings here with those in
Boe-der.
In both cases, the parties had entered a contract containing a standard arbitration clause.
Initially, we point out that this case, unlike
Roeder,
involves a motion to dismiss claims pursuant to Rule 12(b)(1) and (6), not simply an application for an order to compel arbitration. The relief Porta-John sought was granted — the trial court dismissed all claims against Porta-John, and included Rule 54(b) language indicating finality. Such a judgment of dismissal, under either Rule 12(b)(1) or (6), is a final, appealable order under A.R.S. § 12-2101(B).
See King v. Superior Court,
What further distinguishes Roeder from the present case is that Porta-John seeks arbitration in Michigan, and argued to the trial court that Michigan arbitration would divest Arizona of subject matter jurisdiction. We need not determine the merits of that contention except to note that we would have jurisdiction over an appeal from such an order as affecting a substantial right which “in effect determines the action and prevents judgment from which an appeal might be taken.” A.R.S. § 12-2101(D). Porta-John fails to show us how, if this order is to be considered interlocutory and not appealable, Dusold would ever be able to obtain appellate relief over the “final” judgment in this court. Under Porta-John’s own reasoning, therefore, the order would be appealable even if interlocutory. See A.R.S. § 12-2101(D).
Because we have jurisdiction to consider at least the dismissal and jurisdictional aspects of the trial court’s order (transfer of arbitration to Michigan), we have jurisdiction over this appeal. Furthermore, any intermediate orders incorporated into that judgment are also reviewable once subject matter jurisdiction has been acquired.
See State v. Rodriguez,
SCOPE OF THE ARBITRATION CLAUSE
Dusold's main argument is that the arbitration clause in his contract with Porta-John does not subject him to arbitration in Michigan over his tort action in Arizona for negligence and products liability against Porta-John. The arbitration clause at issue here provided as follows:
Any controversy or claim arising out of, or relating to this agreement, or the breach thereof, shall be settled by arbitration in the state of Michigan where PORTA-JOHN conducts its principal business, in accordance with the rules then pertaining of the American Arbitration Association, and judgment upon the award rendered may be entered by any Court having jurisdiction thereof.
The question whether a tort claim arising between parties who have a contractual relationship requiring that a claim “arising out of or relating to” an agreement or a breach of an agreement be subjected to arbitration is not without difficulty. The difficulty, in part, arises from the judicial preference to view arbitration as both time and money efficient as compared to judicial determinations; courts thus generally favor arbitration as the preferred mode of resolution. For this reason, courts have adopted somewhat broad statements of public policy regarding arbitration. One, for example, is that espoused in
New Pueblo Constructors, Inc. v. Lake Patagonia Recreation Association,
These broad statements of judicial policy relating to arbitration serve the stated purpose of promoting efficiency in time and money when a dispute between parties is contractual in nature. However, when a dispute is not contractual but tortious, courts have shown an increasing reluctance to subject personal injury claims to contractual restraints on judicial resolution. This reluctance has taken some courts to the other extreme of limiting arbitration clauses where tort claims are concerned:
[AJbsent a clear explicit statement ... in a contract directing an arbitrator to hear and determine the validity of tort damage claims by one party against another, it must be assumed that the parties did not intend to withdraw such disputes from judicial authority.
Fuller v. Guthrie,
Such policy statements recognize that only those disputes that the parties could reasonably intend to be submitted to arbitration should be encompassed within their contractual agreement.
Clarke v. Asarco, Inc.,
Moreover, courts also recognize that the expertise that particular arbitrators may bring to a contract dispute, which increases the acceptance of the arbitrator’s award, is lacking when the claim is for personal injuries. See Old Dutch Farms, Inc.
In our opinion, the better-reasoned cases start with the premise that, in order for the dispute to be characterized as arising out of or related to the subject matter of the contract, and thus subject to arbitration, it must, at the very least, raise some issue the resolution of which requires a reference to or construction of some portion of the contract itself.
Id.
The relationship between the dispute and the contract is not satisfied simply because the dispute would not have arisen absent the existence of a contract between the parties.
Armada Coal Export, Inc. v. Interbulk, Ltd.,
This reasoning is supported by the analysis employed by Arizona courts in differentiating tort claims “arising out of contract” from tort claims that arise solely out of legal duties imposed by law, for the purpose of awarding attorneys’ fees pursuant to A.R.S. § 12-341.01(A).
See, e.g., Bar-
*363
mat v. John and Jane Doe Partners A-D,
Applying that rationale to this litigation, we note that Dusold alleged that his personal injuries occurred because Porta-John failed to warn him of the dangerous and toxic nature of its chemicals and failed to properly instruct him as to their safe use. Dusold does not contend that these duties to warn or instruct arose out of any contractual obligation of Porta-John under the licensing agreement between them. Rather, Dusold alleges that the duties to warn or instruct arose solely from Porta-John’s obligations as a supplier of hazardous materials and such a supplier’s duties are controlled by common law tort principles of products liability. The Arizona Supreme Court has recognized that when an injured buyer maintains a tort action on a theory of strict liability, “the essential nature of the action sounds in tort,” even if the parties’ relationship was formed by a contract, because “the liability of the seller would exist even without a contract.”
Barmat,
Because we hold that the arbitration clause does not apply to Dusold’s personal injury tort claim, we need not address the constitutional issue or his contention that requiring arbitration in Michigan is unreasonable.
Judgment of the trial court is reversed and the matter is remanded for reinstatement of Dusold’s complaint.
Notes
. Other defendants were Enzymes of America, Inc.; Fred and Carolyn Ziegenbein, d/b/a Star Sanitation; ZED Services, Inc.; Celanese Chemical Co., Inc.; John and Jane Does 1-10; ABC partnerships 1-10; and XYZ corporations 1-10. Porta-John’s motion for dismissal did not involve the claims against these parties.
. A.R.S. § 12-2101.01 provides:
A. An appeal may be taken from:
1. An order denying an application to compel arbitration made under the terms of § 12-1502;
2. An order granting an application to stay arbitration made under the terms of subsection B of § 12-1502;
3. An order denying confirmation of an award;
4. An order modifying or correcting an award;
5. An order vacating an award without directing a rehearing; or
6. A judgment or decree entered pursuant to the provisions of article 1, chapter 9, of this title.
(Footnote omitted.)
