All-South Subcontractors, Inc. Inc. v. Amerigas Propane, Inc. and Amerigas Propane, L.P.

206 So. 3d 77, 2016 Fla. App. LEXIS 12135
CourtDistrict Court of Appeal of Florida
DecidedAugust 11, 2016
Docket1D15-5862
StatusPublished
Cited by6 cases

This text of 206 So. 3d 77 (All-South Subcontractors, Inc. Inc. v. Amerigas Propane, Inc. and Amerigas Propane, L.P.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
All-South Subcontractors, Inc. Inc. v. Amerigas Propane, Inc. and Amerigas Propane, L.P., 206 So. 3d 77, 2016 Fla. App. LEXIS 12135 (Fla. Ct. App. 2016).

Opinion

JAY, J.

We have for review the trial court’s final order dismissing with prejudice Appellant’s amended complaint for lack of subject matter jurisdiction and granting Ap-pellees’ motion to compel arbitration. The issue presented is whether an arbitration clause contained in a bulk mailer sent out in 2012 by Appellees to its customers applied retroactively to a business transaction between Appellant and Appellees that was finalized two years earlier. We hold it does not and reverse.

On December 3, 2014, Appellant All-South Subcontractors, Inc., filed an Amended Class Action Complaint naming as defendants Appellees Amerigas Propane, Inc., and Amerigas Propane, L.P., and alleging Appellees’ practice of charging “Fuel Recovery Feés” to its customers, including Appellant and Other Florida customers of Appellees, violates the Florida Deceptive and Unfair Trade Practices Act. Appellant also pleads a cause of action for unjust enrichment. According to the factual allegations of the amended complaint, *79 Appellant is “a- small commercial roofing business,” and Appellees are “the largest seller[s] of propane in the United States.” In 2010, while working on the roof of the National Flight Academy in Pensacola, Florida, Appellant purchased propane from Appellees.

Appellees filed a motion to dismiss the amended complaint for lack of subject matter jurisdiction, to compel arbitration, and to dismiss the complaint for failure to state a cause of action. In its motion, Appellees argue “the putative class action must be dismissed because the dispute between the parties is governed by an arbitration agreement between AmeriGas and its customers, including All-South, which requires such disputes be resolved through binding arbitration.” Attached to the motion is the affidavit of James Armstrong, president of Yoder and Armstrong Printing. 1 In his affidavit, Mr. Armstrong attests that on August 12, 2012, he was instructed by Appellees “to mail written notice of the General Terms and Conditions of AmeriGas Propane, L.P.[,] Relating to the Supply of Propane and Lease of Propane Related Equipment to Commercial Customers (‘Terms and Conditions’).” According to Mr. Armstrong, his company began preparation of the notices on November 29, 2012,- and a “true and correct copy of the mailing that was prepared for and mailed to All South [sic]” is attached to his affidavit as “Exhibit A.” The bulk mailer was delivered to the United States Postal Service on December 5, 2012. Each “tri-fold” document in the mailer contains the following introduction:.

We greatly appreciate the opportunity to.be your propane supplier. It is our policy to annually provide all of our customers with our standard terms and conditions. We ask that you keep these standard terms attached with your other propane provider documents. . We look forward to providing you with continued reliable service in the years ahead.

Following the introduction is the heading: “GENERAL TERMS AND CONDITIONS,” under which paragraph “20”— entitled “CLAIMS AND ARBITRATION”—reads in relevant part as follows:

Aside from credit or collection matters, Customer and Company agree that upon the request!of either party, any dispute or controversy between the parties that in any way arises out of or relates to. the Agreement or Company’s provision of .goods and services to Customer, will be decided by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. Neither Company nor Customer shall be entitled to ... arbitrate any claim as a representative or member of a class .... Within thirty (30) days of receipt of this arbitration provision, Customer can elect to opt out of this provision (that is, exclude *80 it from this Agreement) by sending written notice to Company by certified mail to [address in Pennsylvania] stating that Customer wishes to opt out of this arbitration provision.

(Emphasis added.) At the very bottom of the second page of the mailer appears the date “August 20, 2012,” and, just above the date, paragraph “27” states: “For most non-residential Customers, these terms and Conditions will become effective 30 days after the date of this notice.”

In a second affidavit attached to the motion, Appellees’ district manager' attests to his having reviewed Appellant’s “file,” which contained “Sales & Service Orders” for the sale of propane, and for the removal of spent tanks dated January 29, 2013, and February 26, 2013. Finally, according to a third affidavit from a member of Appellees’ legal department, Appellant did not respond to the opt-out provision of the “Terms and Conditions.”

At the hearing on the motion to dismiss, Appellees argued that the “Terms and Conditions” governed the relationship between them and their customers; that the “Terms and Conditions” had been on their website since before December 2010 and were updated monthly; and that the 2012 bulk mailer was their attempt to assure that all of their customers understood they were bound by those very same “Terms and Conditions,” which were already present on the company website. More concisely, Appellees’ counsel asserted, “Mailing is the offer. Continuing Service with the company is acceptance of the offer. No signature is required,” and “Failing to opt out is assent.”

Appellant initially responded by pointing out that the alleged website terms and conditions—going back to 2010—were not before the trial court, and that the date on the bottom of the.mailer was August 2012. Appellant then stressed that its lawsuit is premised on a 2010 invoice and questioned Appellees’ ability to retroactively bind Appellant to an arbitration clause that Appellant had not known existed in 2010. Appellant urged that the bulk mailer could not, by itself, form the contract without any evident means of assent on Appellant’s part, and, absent a contract, there could be no agreement to arbitrate.

After listening to these arguments, the trial court ruled: “The Court finds that particularly in the context of sophisticated litigants—this is not a consumer issue from the Plaintiffs side—that the arbitration provision is enforceable and was assented to by the Plaintiff, and the case will be dismissed on that basis only.” (Emphasis added.) Contrary to this finding, we hold, as a matter of law, that Appellant did not “assent” to arbitrate the 2010 claims with Appellees.

“[T]he standard of review applicable to the trial court’s construction of [an] arbitration provision, and its application of the law to the facts found, is de novo.” Gainesville Health Care Ctr., Inc. v. Wes ton, 857 So.2d 278, 283 (Fla. 1st DCA 2003) (citing Powertel, Inc. v. Bexley, 743 So.2d 570, 573 (Fla. 1st DCA 1999)). “De novo review simply means that the appellate court is free to decide the question of law, without deference to the trial judge, as if the appellate court had been deciding the question in the first instance.” Philip J. Padovano, Florida Appellate Practice § 19:4 (2015 ed.).

In determining the issue of whether to compel arbitration, the principal consideration is whether there is an agreement to arbitrate. In Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc.,

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Cite This Page — Counsel Stack

Bluebook (online)
206 So. 3d 77, 2016 Fla. App. LEXIS 12135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-south-subcontractors-inc-inc-v-amerigas-propane-inc-and-amerigas-fladistctapp-2016.