Advance Tank & Constr. Co. v. GULF COAST ASPHALT CO., LLC

968 So. 2d 520, 2006 Ala. LEXIS 21, 2006 WL 253600
CourtSupreme Court of Alabama
DecidedFebruary 3, 2006
Docket1031875
StatusPublished
Cited by14 cases

This text of 968 So. 2d 520 (Advance Tank & Constr. Co. v. GULF COAST ASPHALT CO., LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advance Tank & Constr. Co. v. GULF COAST ASPHALT CO., LLC, 968 So. 2d 520, 2006 Ala. LEXIS 21, 2006 WL 253600 (Ala. 2006).

Opinion

968 So.2d 520 (2006)

ADVANCE TANK AND CONSTRUCTION COMPANY, INC.
v.
GULF COAST ASPHALT COMPANY, L.L.C.

1031875.

Supreme Court of Alabama.

February 3, 2006.

*522 A.H. Gaede, Jr., Jonathan B. Head, and Leigh Anne Hamburg of Bradley Arant Rose & White, LLP, Birmingham, for appellant.

Samuel H. Franklin of Lightfoot, Franklin & White, L.L.C., Birmingham; and J. Don Foster of Jackson, Foster & Graham, L.L.C., Mobile, for appellee.

SMITH, Justice.

The defendant below, Advance Tank and Construction Company, Inc. ("Advance Tank"), appeals from the denial of its motion to compel arbitration of the claims of the plaintiff, Gulf Coast Asphalt Company, L.L.C. ("Gulf Coast"). We reverse and remand.

Facts and Procedural History

Gulf Coast operates a shipping terminal in Mobile. Advance Tank, which is located in Colorado, manufactures and installs steel tanks. On November 6, 2002, Gulf Coast entered into a contract with Advance Tank for the construction of certain tanks at the shipping terminal. Although the record and briefs are unclear as to the details of the construction project, a dispute apparently arose between Gulf Coast and Advance Tank regarding the project.

On June 17, 2004, Gulf Coast sued Advance Tank, seeking damages on claims of breach of contract, negligence, and money had and received. On July 23, 2004, Advance Tank filed a claim in arbitration against Gulf Coast. On August 4, 2004, Gulf Coast filed a motion in the trial court seeking an order restraining Advance Tank from pursuing arbitration. On August 9, 2004, the trial court granted the motion and entered a temporary restraining order. That same day, Advance Tank filed in the trial court a motion to compel arbitration. Gulf Coast filed a response in opposition to the motion to compel.

On August 26, 2004, the trial court issued an order enjoining Advance Tank from pursuing any claim in arbitration and denying Advance Tank's motion to compel arbitration. Advance Tank appeals. See Rule 4(d), Ala. R.App. P.

Standard of Review

"We review de novo the denial of a motion to compel arbitration. Springhill Nursing Homes, Inc. v. McCurdy, 898 So.2d 694, 696 (Ala.2004). The party seeking to compel arbitration has the burden of proving both that a contract calling for arbitration exists and that the contract evidences a transaction affecting interstate commerce. McCurdy, 898 So.2d at 696. Once this prima facie showing has been made, the burden then shifts to the party opposing arbitration to present substantial evidence indicating that the supposed arbitration agreement is either invalid or inapplicable to the dispute as to which arbitration is being sought. Unum Life Ins. Co. of America v. Wright, 897 So.2d 1059, 1081 (Ala.2004)."

Patriot Mfg., Inc. v. Jackson, 929 So.2d 997, 1000 (Ala.2005).

*523 Discussion

A.

In support of its motion to compel arbitration, Advance Tank filed a copy of the construction contract at issue in this case, as well as an affidavit by Terry Hyatt, vice president of Advance Tank. The contract consists of 20 pages. Each page indicates its number of the 20, e.g., 15 of 20. Section 1 of the contract, entitled "Work and Contract Documents," states, in part:

"It is agreed, effective the last date of execution hereof . . . that:
"A. [Advance Tank] will . . . in a professional and workmanlike manner construct and complete construction of Tanks at [Gulf Coast's] terminal . . . as provided for in the Bid Specifications for Construction of Tanks, Additional Requirements[,] and Contractors Proposal.
"B. [Advance Tank] will furnish and pay for all material, labor, tools, equipment, utilities, facilities, etc., necessary therefore [sic], and related items as described and identified herein and on the attached drawings[,] documents, and specifications; all of which are hereby specifically incorporated herein by reference as if set forth word for word; all of said Exhibits hereinafter collectively referred to as the `Work.' All of the Work will be in accordance with all applicable laws, rules, and regulations, and consistent with the terms hereof; in accordance with the attached specifications incorporated herein by reference, as the same may be modified in writing from time to time; and, in accordance with the following additional attached documents which are incorporated by reference and made a part hereof as follows:
"Attachment A—Bid Specifications for Construction of Tanks at Mobile, Alabama
"Attachment B—Reserved[[1]]
"Attachment C—Additional Requirements
"Attachment D—Contractors Proposal."

"Attachment D," also referred to as the "Contractors Proposal," consists of page "17 of 20" through page "20 of 20" of the contract. It is dated September 12, 2002, and is a letter addressed to Summit Terminaling Services, L.L.C.[2] Although this document appears to have been drafted before the contract was drafted, the title "Attachment D" appears at the top of the first page of the letter, and the page-numbering scheme of the entire contract appears at the bottom of its pages.

Attachment D discusses the specifications and the terms of a proposal or agreement regarding the construction of a 97-foot diameter asphalt tank. On page "18 of 20," it states: "Terms and Conditions: The attached terms and conditions form a part of this proposal and shall apply." On the next page, page "19 of 20," it states: "The attached Terms and Conditions shall form a part or [sic] this proposal. However, we do not anticipate any difficulty in negotiating mutually agreeable contract terms." Finally, the bottom of page "20 of 20" states: "Attachments: Terms and Conditions."

Advance Tank also included with its motion to compel arbitration a document entitled "Advance Tank Construction Company Standard Terms and Conditions." This document states that it is part of Advance Tank's "Proposal." Section 12 of the document *524 contains an arbitration provision, which states, in pertinent part:

"DISPUTE: All disputes between the parties, which cannot be amicably settled, shall be settled by binding arbitration according to the American Arbitration Association Construction Industry Rules. The arbitration shall take place in Denver, Colorado."

According to Hyatt's affidavit, a copy of Advance Tank's standard terms and conditions was transmitted with the September 12, 2002, proposal.

"Parties to a contract are bound by pertinent references therein to outside facts and documents." Ex parte Dan Tucker Auto Sales, Inc., 718 So.2d 33, 36 (Ala.1998). "`Other writings, or matters contained therein, which are referred to in a written contract[,] may be regarded as incorporated by the reference as a part of the contract and[,] therefore, may properly be considered in the construction of the contract.' 17A Am.Jur.2d Contracts § 400 (1991)." 718 So.2d at 36. "`[A] contract may incorporate the terms of another document by reference.' McDougle v. Silvernell, 738 So.2d 806, 808 (Ala.1999)." Cavalier Mfg., Inc. v. Clarke, 862 So.2d 634, 640 (Ala.2003). Attachment D, which was part of the contract, expressly incorporated by reference Advance Tank's standard terms and conditions, which contained the arbitration provision. This arbitration provision was therefore part of the contract.

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