Brasfield & Gorrie, LLC v. SOHO PARTNERS

35 So. 3d 601
CourtSupreme Court of Alabama
DecidedAugust 21, 2009
Docket1070296
StatusPublished
Cited by1 cases

This text of 35 So. 3d 601 (Brasfield & Gorrie, LLC v. SOHO PARTNERS) 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
Brasfield & Gorrie, LLC v. SOHO PARTNERS, 35 So. 3d 601 (Ala. 2009).

Opinion

35 So.3d 601 (2009)

BRASFIELD & GORRIE, L.L.C.
v.
SOHO PARTNERS, L.L.C.

1070296.

Supreme Court of Alabama.

August 21, 2009.
Rehearing Denied October 16, 2009.

*602 Joseph B. Mays, Jr., Marc James Ayers, and Darrell C. Tucker II of Bradley Arant Rose & White LLP, Birmingham, for appellant.

James A. Harris III and Nicole Mapp Hardee of Harris & Harris, LLP, Birmingham, for appellee.

BOLIN, Justice.

Brasfield & Gorrie, L.L.C. (hereinafter referred to as "B & G"), appeals from an order of the Jefferson Circuit Court denying its motion to compel arbitration. We reverse and remand.

I. Facts and Procedural History

In September 2004, B & G contracted with Soho Partners, L.L.C, to construct two "towers" in Homewood, Alabama, combining both retail and condominium space. The contract contained two conditions precedent to arbitration: (1) claims would be referred initially to the architect for decision and, if not resolved, (2) claims would mediated before arbitration was invoked. The pertinent parts of the contract state:

"§ 4.4 RESOLUTION OF CLAIMS AND DISPUTES
"§ 4.4.1 Decision of Architect. Claims, including those alleging an error or omission by the Architect, ... shall be referred initially to the Architect for decision. An initial decision by the Architect shall be required as a condition precedent to mediation, arbitration or litigation of all Claims between the Contractor and Owner arising prior to the date final payment is due.
"....
"§ 4.5 MEDIATION
"§ 4.5.1 Any claim arising out of or related to the Contract ... shall, after initial decision by the Architect or 30 days after submission of the Claim to the Architect, be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either party.
*603 "§ 4.5.2 The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect. Request for mediation shall be filed in writing with the other party to the Contract and with the American Arbitration Association. The request may be made concurrently with the filing of a demand for arbitration but, in such event, mediation shall proceed in advance of arbitration or legal or equitable proceedings ....
"§ 4.6 ARBITRATION
"....
"§ 4.6.2 Claims not resolved by mediation shall be decided by arbitration, which unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect. The demand for arbitration shall be filed in writing with the other party to the Contract and with the American Arbitration Association, and a copy shall be filed with the Architect."

(Emphasis added.)

A dispute arose between the parties regarding the amount owed B & G under the contract. In March 2007, B & G submitted to the American Arbitration Association ("AAA") a demand for arbitration, in which it stated that it had performed the work required under contract, that it had rendered invoices for all amounts owing under the contract, and that Soho Partners had refused to pay a specific sum due under the contract. Soho Partners moved to dismiss the arbitration proceeding and subsequently sued B & G, seeking, among other things, to enjoin the arbitration proceeding. Specifically, Soho Partners alleged that B & G had failed to satisfy conditions precedent to arbitration in accordance with the terms of the parties' contract. In May 2007, B & G filed a "Motion to Dismiss or in the Alternative to Stay Action Pending Arbitration," arguing that the issue whether conditions precedent to arbitration had been satisfied was for the arbitrator to decide. B & G attached an exhibit to its motion in which it argued that the requirement of a decision by the architect was not applicable or, if it was applicable, the condition had been satisfied by various determinations that had already been made by the architect and Soho Partners' refusal to pay based on those determinations. With respect to the mediation requirement, B & G argued that this requirement had been waived by Soho Partners' actions or had been satisfied through communications between parties' counsel and with the AAA in which B & G had made offers to mediate, which offers Soho Partners rejected.

The trial court entered an order denying B & G's motion. Specifically, the trial court concluded that B & G had failed to make a written request for mediation before initiating the arbitration proceeding:

"It is undisputed that the parties' contract requires that two conditions precedent must be satisfied before arbitration may be invoked: first, claims must be submitted to the architect, and second, a written request for mediation must be made. This court need not reach the issue of whether claims were submitted to the architect, because the record before the court is clear that [B & G] did not make any request for mediation, much less a written request for mediation prior to its initiating the arbitration proceeding. In fact, there is no evidence in the record that any written request for mediation has been made to date. Therefore, the conditions precedent to involve arbitration were not met.
*604 "....
"1. The court finds that the matter of whether [B & G] has satisfied conditions precedent to arbitration is for this court to decide.
"2. The court finds that [B & G] did not mediate its claims or request mediation in writing in accordance with the parties' contract. The [Federal Arbitration Act] has not been triggered because conditions precedent have not been satisfied...."

B & G appealed. On March 25, 2008, this Court entered an order granting B & G's motion to stay proceedings in the trial court pending the disposition of this appeal.

II. Standard of Review

At the outset we note that Soho Partners asserts that this Court lacks jurisdiction to entertain B & G's appeal. Specifically, Soho Partners argues that B & G's appeal is not from an order compelling or denying arbitration and is, therefore, not proper under Rule 4(d), Ala. R.App. P. The record reveals that after Soho Partners filed its complaint in the instant case, B & G filed a "Motion to Dismiss or in the Alternative to Stay Action Pending Arbitration." In its motion, B & G specifically stated, among other things, that a dispute had arisen between the parties over the amount due B & G under the parties' contract; that the contract stated that all disputes were to be resolved by binding arbitration; and that B & G had submitted the dispute to the AAA. It is clear from the language in B & G's motion that B & G was seeking an order compelling arbitration. Under usual circumstances, the motion is couched in two parts: "to compel arbitration" and "to stay the proceedings pending arbitration." The two parts of the motion go hand in hand.

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Bluebook (online)
35 So. 3d 601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brasfield-gorrie-llc-v-soho-partners-ala-2009.