Carl Gregory Chrysler-Plymouth, Inc. v. Barnes

700 So. 2d 1358, 1997 WL 353596
CourtSupreme Court of Alabama
DecidedJuly 1, 1997
Docket1960182
StatusPublished
Cited by14 cases

This text of 700 So. 2d 1358 (Carl Gregory Chrysler-Plymouth, Inc. v. Barnes) 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
Carl Gregory Chrysler-Plymouth, Inc. v. Barnes, 700 So. 2d 1358, 1997 WL 353596 (Ala. 1997).

Opinion

700 So.2d 1358 (1997)

CARL GREGORY CHRYSLER-PLYMOUTH, INC.
v.
Clarenzo D. BARNES and Felecia Rogers.

1960182.

Supreme Court of Alabama.

June 27, 1997.
Concurring Opinion July 1, 1997.

*1359 Simeon F. Penton of Kaufman & Rothfeder, P.C., Montgomery, for appellant.

C. Morris Mullin of Hatcher, Stubbs, Land, Hollis & Rothschild, Columbus, Georgia; and W. Banks Herndon of Loftin, Herndon & Loftin, Phenix City, for appellees.

Concurring Opinion of Justice Almon, July 1, 1997.

PER CURIAM.

Clarenzo Barnes and Felecia Rogers sued Carl Gregory Chrysler-Plymouth, Inc. ("Gregory"), alleging that Gregory had fraudulently forged Barnes's signature onto an automobile extended service contract. Gregory appeals from the trial court's denial of its motion to compel arbitration of Barnes and Rogers's claim. An order denying a motion to arbitrate is an appealable order. See Ex parte Brice Building Co., 607 So.2d 132 (Ala.1992).

In June 1995, Barnes and Rogers, an engaged couple, visited the Gregory dealership and purchased a used Hyundai automobile.[1] While selling the car, Gregory attempted also to sell Barnes and Rogers a "Used Vehicle Extended Service Agreement" ("the service agreement"), which would operate as an extended warranty on the Hyundai. Barnes and Rogers declined the offer. Barnes executed a "Retail Purchase Contract" ("the purchase contract") for the Hyundai. Barnes and Rogers then left the dealership with the Hyundai, and Gregory representatives told them that they would receive copies of the executed paperwork in the mail.

When Barnes and Rogers received the paperwork in the mail from Gregory, they discovered a fully executed service agreement for which Barnes had been charged $1,495;[2] Barnes's signature was on the agreement. Barnes and Rogers allege that Barnes's signature was a forgery and that Barnes and Rogers never agreed to purchase the service agreement. Barnes and Rogers do not dispute the authenticity of Barnes's signature on the purchase contract.

Gregory argues that this fraud claim should be submitted to arbitration. The purchase contract contained an arbitration clause stating the following:

*1360 "Buyer and Dealer agree that all claims, demands, disputes or controversies of every kind or nature that may arise between them concerning any of the negotiations leading to the sale of the vehicle, terms and provisions of the sale, the performance or condition of the vehicle, or any other aspects of the vehicle and its sale shall be settled by binding arbitration.... Without limiting the generality of the foregoing, it is the intention of the Buyer and Dealer to resolve by binding arbitration all disputes between them concerning the vehicle, the terms and meaning of any of the documents signed or given in connection with the sale of the vehicle, and any representations, promises or omissions made in connection with the financing, credit life insurance, disability insurance, and vehicle service contract purchased or obtained in connection with the vehicle. Either party may demand arbitration by filing with the American Arbitration Association a written demand for arbitration along with a statement of the matter in controversy."

The service agreement upon which the plaintiffs say Barnes's name was forged also contained an arbitration provision. However, Gregory does not rely on that arbitration provision in asking that this dispute be submitted to arbitration. Instead, it relies on the arbitration clause quoted above, from the purchase contract; that clause, Gregory claims, is sufficiently broad to apply to Barnes and Rogers's claim. Gregory notes that the arbitration clause in the purchase contract provides for arbitration of all disputes "concerning any of the negotiations leading to the sale of the vehicle, terms and provisions of the sale, the performance or condition of the vehicle, or any other aspects of the vehicle and its sale," and Gregory notes that it specifically mentions service agreements: "all disputes between [the buyer and the dealer] concerning the vehicle, the terms and meaning of any of the documents signed or given in connection with the sale of the vehicle, and any representations, promises or omissions made in connection with the financing, credit life insurance, disability insurance, and vehicle service contract purchased or obtained in connection with the vehicle" are subject to arbitration.

In Allied-Bruce Terminix Companies v. Dobson, 513 U.S. 265, 115 S.Ct. 834, 130 L.Ed.2d 753, (1995), the United States Supreme Court held that the Federal Arbitration Act governs all contracts falling within Congress's powers under the Commerce Clause. The federal policy favoring arbitration was recognized by this Court in Allied-Bruce Terminix Companies v. Dobson, 684 So.2d 102 (Ala.1995) (on remand from the United States Supreme Court following that Court's Terminix decision). In that opinion, this Court quoted Moses H. Cone Memorial Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24-25, 103 S.Ct. 927, 941-42, 74 L.Ed.2d 765 (1983):

"`The Arbitration Act establishes that, as a matter of federal law, any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration, whether the problem at hand is the construction of the contract language itself or an allegation of waiver, delay, or like defense to arbitrability.'"

Allied-Bruce Terminix, 684 So.2d at 107.

The first task of this Court, when reviewing an arbitration provision, is to determine whether the parties agreed to arbitrate the dispute at hand. We find no agreement to arbitrate the dispute in this case. Although the arbitration provision Gregory relies on is broad, it is clear that it does not compel arbitration of Barnes and Rogers's claim. The dispute here does not concern the negotiations leading to the sale of the Hyundai, nor does it concern the terms and provisions of the sale, the performance or the condition of the Hyundai, or any other aspect of the vehicle or its sale. The dispute arises solely from Gregory's alleged forgery of Barnes's signature onto the service agreement. The fact that the arbitration provision mentions service contracts does not compel arbitration of this dispute, because Barnes says the only reason he has a service agreement is that his name was forged onto it— this alleged forgery is the heart of the fraud alleged in this case.

The United States Supreme Court has stated that "courts should remain attuned to well-supported claims that the *1361 agreement to arbitrate resulted from the sort of fraud ... that would provide grounds `for the revocation of any contract.'" Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 627, 105 S.Ct. 3346, 3354, 87 L.Ed.2d 444 (1985). While this is true, courts should be even more attuned to claims that the agreement from which arbitration allegedly stems was, in fact, a forged document, which would not even provide the basis from which a court could find a valid contract to be revoked; it is impossible to revoke a contract that never existed. Certainly, if the facts are as Barnes and Rogers allege, the service agreement here has never even existed as a valid contract.

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Cite This Page — Counsel Stack

Bluebook (online)
700 So. 2d 1358, 1997 WL 353596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carl-gregory-chrysler-plymouth-inc-v-barnes-ala-1997.