CAJUN ELEC. POWER CO-OP., INC. v. Louisiana Power & Light Co.

324 So. 2d 475, 1975 La. App. LEXIS 3178
CourtLouisiana Court of Appeal
DecidedDecember 15, 1975
Docket7204
StatusPublished
Cited by12 cases

This text of 324 So. 2d 475 (CAJUN ELEC. POWER CO-OP., INC. v. Louisiana Power & Light Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CAJUN ELEC. POWER CO-OP., INC. v. Louisiana Power & Light Co., 324 So. 2d 475, 1975 La. App. LEXIS 3178 (La. Ct. App. 1975).

Opinion

324 So.2d 475 (1975)

CAJUN ELECTRIC POWER COOPERATIVE, INC.
v.
LOUISIANA POWER AND LIGHT COMPANY.

No. 7204.

Court of Appeal of Louisiana, Fourth Circuit.

December 15, 1975.
Rehearing Denied January 13, 1976.

John Schwab, Baton Rouge, for plaintiff-appellant.

Monroe & Lemann, Andrew P. Carter, New Orleans, for defendant-appellee.

Before LEMMON, BOUTALL and BEER, JJ.

*476 BEER, Judge.

Cajun Electric Power Cooperative, Inc., (hereafter, Cajun), plaintiff-appellant, filed an original petition in the Civil District Court for the Parish of Orleans seeking to compel Louisiana Power & Light Company (hereafter, LP&L), defendant-appellee, to arbitrate a dispute which arises in the dealings between them covered by a contract dated May 29, 1970. The contract affirmatively provides that certain particularized disputes which arise will be arbitrable. In response to the petition seeking to compel arbitration, LP&L filed an exception of no right of action which was augmented, ex proprio motu on the part of the trial judge, by an exception of no cause of action. Cajun now appeals from the maintaining of that exception of no cause of action by the trial court.

The record is composed of the various pleadings, memoranda in support thereof, and certain exhibits in the form of the contract between the parties, letters and other pertinent documents. It is sufficiently complete for us to deal with the correctness of the trial court's ruling on the exception but not with the main point in controversy—Cajun's right to arbitration of the dispute which has arisen regarding interpretation of a particular section of the contract.

We reverse the judgment of the district court, overrule the exception of no cause of action and remand.

LP&L and Cajun confected a contract under which LP&L would supply Cajun with designated quantities of electrical power at various points of delivery. Sections 1.02[1], 1.03[2], and 1.05[3] of the contract contain *477 provisions for determining the quantity of power to be delivered to existing and newly designated delivery points. Section 1.04[4] provides for arbitration of disputes which arise under certain conditions described in portions of Sections 1.02 and 1.03.

Cajun characterizes the request which precipitates this controversy as one seeking delivery of electrical power to a new delivery point in the Gallion-Bastrop area as contemplated by Sections 1.02 and 1.03. In the correspondence attached as exhibits to plaintiff's petition both parties treat the demand in terms of it being with respect to a new delivery point. There is, however, rather clear indication from the exchanges of correspondence that the creation of such new delivery point in the Gallion-Bastrop area could, for various technical and economic reasons, be directly related to a reduction in power delivered to another point also covered by the contract. This latter circumstance is dealt with under Section 1.05, and the method of dealing with controversies arising under this section is clearly beyond the express scope of the arbitration provision in Section 1.04. Thus, while an arbitrable controversy appears to arise in the course of Cajun's quest for a new point of delivery as contemplated by Sections 1.02, and 1.03, it also, by implication, appears to arise as a result of the additional request that there be corresponding reduction in power from an existing point of delivery—a nonarbitrable controversy.

On the basis of the record now before us, we do not find the request for the new delivery point sought by Cajun, and the irreconcilable differences directly generated thereby, so inextricably intertwined with the requested reduction of capacity at the existing Gallion-Bastrop delivery point to cause each contention to lose its specific identity. And, since issue identity is, thus, maintained intact, so too should be the method of controversy resolution which is ascribable, contractually, to each issue.

We perceive that both parties have heretofore attempted to deal with each other in good faith and understand, we think, the strength of conviction on both sides. Nevertheless, Cajun's contended right to arbitrate the irreconcilable differences that have been generated by its request for a new delivery point has been unwittingly combined with its other request. LP&L has made a yeoman effort to articulate that the two are thereby inextricably intertwined and, accordingly contends that the right to arbitrate the controversies arising therefrom cannot be subject to arbitration.

We agree that an intractable and insistent combining of nonarbitrable issues with those which are arbitrable must be held to have cracked the somewhat fragile vessel *478 of arbitrability. We also agree with able counsel for LP&L that controversies arising under Section 1.05 are not arbitrable and contractual willingness to arbitrate expressly with respect to Section 1.02 and Section 1.03 cannot be implied to exist with respect to Section 1.05.

The issues appear to be related but separable. Almost all the matters dealt with in the extensive contract are, to a degree, correlated. It seems unnecessary to observe that the very nature of a contract such as this between parties such as these is, essentially, a document containing correlated provisions. The two contentions appear sufficiently different—on their face—to allow for the separate treatment thereof.

We therefore conclude that the petition does state a cause of action to arbitrate the controversy arising under the last sentence of Section 1.02, and Section 1.03. We will, therefore, overrule the exception. The state of the record precludes our ordering the arbitration at this time. LSA-R.S. 9:4203 provides that the court shall order arbitration if it is "satisfied that the making of the agreement for arbitration or the failure to comply therewith is not an issue."

In Bartley, Inc. v. Jefferson Parish School Board, 302 So.2d 280 (La.1974) the Supreme Court considered exceptions of no cause of action, prematurity and waiver. The only point of distinction between Bartley and the present case is the status of the record. In Bartley the court stated:

"In this case, there is no denial that the general contract between Bartley and the School Board included an agreement to arbitrate. It is clear that neither the School Board nor American has submitted to arbitration, although Bartley has requested it."

In the case before us the contract had been placed in evidence and is conceded by the parties to be a contract containing an agreement to arbitrate in a particular instance. The difference that exists between the two cases is that here the record does not disclose an unconditional refusal of LP&L to arbitrate, but rather a conditional refusal based upon its interpretation that such must necessarily involve unarbitrable issues.

LP&L should be given an opportunity to agree to the proposed arbitration or refuse. We remand this matter to the district court (overruling the exception) solely for the purpose of determining if LP&L will refuse to arbitrate.

The law favors an interpretive effort toward upholding arbitration. The purpose of the Louisiana Arbitration Law, LSA-R.S. 9:4201 et seq., had been discussed as follows:

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324 So. 2d 475, 1975 La. App. LEXIS 3178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cajun-elec-power-co-op-inc-v-louisiana-power-light-co-lactapp-1975.