In this appeal, Paul and Carmela Roman challenge an order of the trial court granting the defendants’ motion to compel the arbitration of all claims asserted in the Romans’ four-count complaint. The Romans contend that (1) the trial court erred in compelling the arbitration of counts III and IV as they assert claims against non-signatories to the contracts and (2) the arbitration provisions of the contracts are void and unenforceable as a matter of law because the provisions impermissibly limit the buyers’ remedies. We reject the arguments raised, affirm the order appealed, and write primarily to address the latter claim.
In 2005, the Romans contracted with Atlantic Coast Construction and Development, Inc., for the construction of three homes. By July of 2009, the homes had not been constructed and Atlantic Coast had failed to return the Romans’ deposit. The Romans filed suit against Atlantic Coast, Amy Paladin Crossman (Atlantic Coast’s “contractor” and “qualifying agent”), and Joseph Paladin (Atlantic Coast’s president and the individual who signed the contracts on behalf of Atlantic Coast).
Count I asserted a claim for breach of contract against Atlantic Coast. Count II asserted a claim for breach of fiduciary duty against Joseph Paladin, alleging that, contrary to the terms of the contract, the Romans’ deposit monies had been transferred from the escrow account. Count
“ ‘[A] party cannot be required to submit to arbitration any dispute which he has not agreed so to submit’ ” and for this reason “a non-signatory to a contract containing an arbitration agreement ordinarily cannot compel a signatory to submit to arbitration.” Koechli v. BIP Int’l, Inc.,
This brings us to the Romans’ claim that the order compelling arbitration must be reversed because the arbitration provisions of the contracts are void and/or unenforceable. “An arbitration clause is ... unenforceable if its provisions deprive the plaintiff of the ability to obtain meaningful relief for alleged statutory violations.” Alterra Healthcare Corp. v. Estate of Linton ex rel. Graham,
The contracts at issue in this case contain the following provisions:
9. ARBITRATION CLAUSE FOR
A. All disputes and controversies between the parties arising out of or in connection with this Real Estate Sales Contract, as to the existence, construction, validity, interpretation or meaning, performances, nonperformance, enforcement, operation, breach, continuance, or termination thereof shall be submitted to arbitration....
[[Image here]]
B. The parties stipulate that the provisions of this agreement shall be a complete defense to any suit, action, or proceeding instituted in any federal, state, or local court or before any administrative tribunal with respect to any controversy or dispute arising during the period of this agreement....
[[Image here]]
31. BREACH BY SELLER: If Builder breaches this Contract or if Builder fails for any reason to complete the sale, Purchaser may terminate this Contract by written notice to Builder and receive a refund of the Earnest Money as Purchaser’s sole remedy. Purchaser hereby waives the right to damages or specific performance, or both from Builder.
Despite the Romans’ argument to the contrary, nothing in the language of the arbitration provision serves to limit the buyers’ remedies to the return of their deposit and to bar them from seeking any other form of relief, including the statutory relief sought in counts III and IV. Paragraph 9B of the arbitration provision states only that if the parties should attempt to resort to the courts or an administrative tribunal to resolve their claims, then the agreement to arbitrate the claims shall constitute a complete defense to the pursuit of judicial remedies. Nothing in the language of 9B, even when read in conjunction with or in light of paragraph 31, can be read to state that the buyers are waiving all statutory causes of action or remedies, such as those for illegal acts like the civil theft and improper maintenance of escrow funds alleged in the complaint. And, to the extent the Romans are suggesting the contract, as a whole, is void and/or unenforceable, such determination is one that must be resolved by the arbitrator. See Linton,
The trial court’s order granting the defendants’ motion to compel arbitration is, accordingly, affirmed.
Affirmed.
