Hаwks Enterprises, Inc., d/b/a Hawks Mobile Homes, and Jim Morgan appeal from the denial of their motion to dismiss or to stay proceedings pending arbitration and to compel arbitration, in an action filed against them by the appellees, Phillip and Deborah Andrews, in connection with the purchase of a mobile homе. On appeal, Hawks and Morgan argue that the trial court erred in 1) refusing to dismiss the action in favor of mandatory arbitration, and 2) refusing the alternative remedy of staying the litigation pending completion of arbitration. We affirm.
In December 1999, the Andrews contracted to purchase a mobile home from Hawks. Morgan wаs the agent who sold the Andrews the home. The Andrews traded in another mobile home, made a small down payment, and financed the remaining balance of $45,079. The Andrews signed a contract (“Sales Contract”), dated December 6, 1999, that contained the specifications of the mobile home and terms of the purchase.
The Andrews also executed a separate “Manufactured Home Retail Installment Contract Security Agreement” (“Installment Contract”) dated Decembеr 20, 1999, for financing of the unpaid balance. The Installment Contract contained an arbitration clause under which the Andrews agreed to settle any “disputes, claims or controversies arising from contract or the relationships which result from this contract” by arbitration. The clause also provided that the arbitration аgreement was governed by the Federal Arbitration Act. The Sales Contract signed December 6, 1999, did not contain an arbitration clause.
On August 23, 2000, the Andrews filed suit against Hawks and Morgan for misrepresentation, negligence, and breach of contract. According to the complaint, the mobile home received by the Andrews did nоt meet the specifications they requested in the Sales Contract. The Andrews alleged, among other things, that Hawks and Morgan intentionally substituted a blank Sales Contrаct signed by the Andrews for the completed Sales Contract that contained the negotiated specifications.
On September 12, 2000, Hawks and Morgan filed a motion to dismiss with an alternative motion to stay the judicial proceeding and compel arbitration in which they contended that the court lacked jurisdiction and that the arbitration agreement governed the claims alleged in the complaint. They also asserted improper venue and failure to state a claim under Ark. R. Civ. P. 12(b)(6). The trial court denied the motion to dismiss and a subsequent motion to clarify, finding that Hawks and Morgan “had not explicitly made the [Sales Contract] subject to thе arbitration clause,” that both the Sales Contract and Installment Agreement had integration clauses stating that they contained the entire agreement, that bоth appeared to be separate and separately enforceable and that “at best, this situation presents an ambiguity which would be construed аgainst the party preparing the documents. ...”
On appeal,' Hawks and Morgan argue that the trial court erred in refusing to either dismiss the complaint or stay the litigation in favor of arbitration. In support of their arguments, they rely to a great extent on case law from federal courts regarding the construction of arbitrаtion agreements. They assert, in essence, that the use of a broad arbitration clause in the Installment Contract indicates the intent of the parties to submit all disputes to arbitration, despite the absence of such a clause in the Sales Contract. Hawks and Morgan rely on two federal cases, Fleet Tire Serv. of North Little Rock v. Oliver Rubber Co.,
Of course, Fleet Tire is not binding authority on this court; nor is it even persuasive authority in this instance. The Andrews’ action involved tort rather than contract claims and the initial Sales Contract had no arbitration clause while the subsequent Installment Agreement contained such a clause, the opposite of the situation in Fleet Tire. We also find Hawks’ and Morgan’s reliance on an Arkansas case, American Ins. Co. v. Cazort,
Moreover, since Cazort, our supreme court has reaffirmed that claims sounding in tort are not arbitrable, regardless of the language used in the arbitration agreement, despite the appellant’s attempted reliance on federal case law. Terminix Int’l. Co. v. Stabbs,
However, there is a further reason for our affirmance of the trial court’s ruling in this case. We will affirm the trial court where it reaches the right result, without regard to the reasoning employed by the trial сourt. Nettleton Sch. Dist. v. Owens,
In this instance, the arbitration clause employed by Hawks and Morgan suffers from the same infirmity. It provides that “all disputes arising under case law, statutory law, and all othеr laws, including, but not limited to contract, tort, and property disputes will be subject to binding arbitration.” Notwithstanding this language, the arbitration clause further states that Hawks retains the option to use judicial or nonjudicial relief to enforce a security agreement related to the collateral, to enforce the mоnetary obligation or to foreclose on the collateral, that such relief would take the form of a lawsuit, and that the Andrews would be precluded from filing a suit, including a counterclaim, in the event Hawks did file a lawsuit against them.
Pursuant to the supreme court’s ruling in Showmethemoney, this arbitration clause is clearly invalid for lack of mutuality, and we cannot say that the trial court erred in refusing to grant Hawks and Morgan’s motion to dismiss or stay litigation.
Affirmed.