CENTURY 21 MASELLE AND ASSOC. v. Smith

965 So. 2d 1031, 2007 WL 2325271
CourtMississippi Supreme Court
DecidedAugust 16, 2007
Docket2005-IA-01696-SCT, 2005-CA-01814
StatusPublished
Cited by30 cases

This text of 965 So. 2d 1031 (CENTURY 21 MASELLE AND ASSOC. v. Smith) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CENTURY 21 MASELLE AND ASSOC. v. Smith, 965 So. 2d 1031, 2007 WL 2325271 (Mich. 2007).

Opinion

965 So.2d 1031 (2007)

CENTURY 21 MASELLE AND ASSOCIATES, INC., and Cindy Smith
v.
Tony L. SMITH and Linda N. Smith.

Nos. 2005-IA-01696-SCT, 2005-CA-01814.

Supreme Court of Mississippi.

August 16, 2007.
Rehearing Denied October 18, 2007.

*1033 Joe S. Deaton, III, Jackson, Mac Haynes, Ellsville, David Christopher Daniel, attorneys for appellants.

Donald W. Boykin, Jackson, attorney for appellees.

EN BANC.

RANDOLPH, Justice, for the Court.

¶ 1. Once again, this Court is called upon to navigate the waters of arbitration. The Court is nonplused by the continuous procession of disputes in an area of law which by now should be well settled, as initial passage of a Federal Arbitration Act[1] ("FAA") occurred more than eight decades ago. It is hoped that today's decision will clarify what some claim to be opaque waters by providing additional guidance to the courts and those who appear therein. But first, we encourage all affected parties to peruse and follow the mandates of the FAA, which would eliminate a number of arbitration issues for both trial and appellate courts.

¶ 2. Aggrieved by the Circuit Court of the First Judicial District of Hinds County's denial of their motion to compel arbitration and motion to transfer venue pursuant to the provisions of the "Real Estate Contract" ("Contract"), Century 21 Maselle and Associates, Inc. ("Century 21") and its agent, Cindy Smith, appealed to this Court. Finding that this arbitration clause is valid, enforceable, and was not waived, we reverse the judgment of the circuit court and remand this case with directions to stay the proceedings as to Century 21 and Cindy Smith only, and direct that their dispute be referred to arbitration consistent with the Contract.

FACTS

¶ 3. On November 9, 2003, John Hendon entered into the Contract to sell his home to Tony L. Smith and Linda N. Smith ("Smiths"). Century 21 and its agent, Cindy Smith, represented the Smiths. Cindy Smith signed the Contract as "[b]roker [a]ssociate." The Contract contained an arbitration clause, which stated:

38. MANDATORY ARBITRATION: Both Buyer and Seller § {hereinafter "parties"} acknowledge, understand and agree that: (1) any controversy, claim, action or inaction arising out of, or relating to, the "purchase" set out herein, as against the listing broker or selling broker and/or their agents or representatives § {hereinafter "company"} involved in this transaction, shall be resolved by arbitration administered by the American Arbitration Association in accordance with its arbitration rules; and (2) judgment of the award rendered by the arbitrator(s) will be entered in the Circuit Court of Rankin County; and (3) the arbitration proceeding shall be conducted within Rankin County, Mississippi; and (4) any damages awarded must conform to the terms and conditions of the "purchase"; and (5) this transaction involves interstate commerce such that the Federal Arbitration Act, 9 U.S.C. Section 1 et seq. (1947 as amended) shall govern the interpretation and enforcement of this arbitration *1034 agreement along with all claims between or among any parties and the company(ies) involved in this transaction; and (6) any action at law regarding this agreement must be filed in the Circuit Court of Rankin County.

(Emphasis added).

¶ 4. On January 14, 2005, the Smiths filed their "First Amended Complaint" against "John Hendon, Union Planters Bank, NA[,] First American Real Estate Solutions of Texas, L.P., Successor in Interest to First American Flood Data Services, Inc., Century 21 Maselle & Assoc., Inc., Cindy Smith, Coldwell Banker Graham & Associates, Inc., Cindy Lai, Mark S. Bounds Realty Partners, Inc., Donald Conn, Jr., [and] Wayne C. Williams" for alleged negligence and/or fraudulent inducement in the purchase of their new home, in violation of the Contract. On February 24, 2005, Century 21 and Cindy Smith filed separate answers and affirmative defenses. Inserted beneath the caption of these pleadings, Century 21 and Cindy Smith plead "Jury Trial Requested." The first defense was entitled "Motion to Dismiss" and averred that "this cause of action should be dismissed and arbitration compelled." That same day, Century 21 and Cindy Smith propounded written discovery, in the form of eighteen interrogatories and fourteen requests for production of documents,[2] for which responses were never received. On March 16, 2005, both Century 21 and Cindy Smith noticed their motion to compel arbitration and/or to transfer venue for a hearing. This occurred only sixty-one days after the suit was filed by the Smiths and twenty days after Century 21 and Cindy Smith filed their separate answers and affirmative defenses. In the interim, litigation was not advanced by these parties.[3]

¶ 5. Although a hearing was held on April 21, 2005,[4] the circuit court did not enter an order until August 17, 2005, denying both Century 21's and Cindy Smith's motion to compel arbitration and to transfer venue. Specifically, the circuit court found that:

3. Although the subject Real Estate Contract contained a mandatory arbitration clause, the Court finds that the motion to compel arbitration and/or transfer venue is without merit and will be denied for the following reasons:
a. The defendants have waived their right to enforce the arbitration clause.
b. All of the defendants have served discovery upon the plaintiffs.
c. Defendants [Century 21] and Cindy Smith requested a Jury Trial in their Answer to the herein lawsuit. . . . This coupled with Century 21 and Smith's service of discovery upon plaintiffs clearly supports a waiver of the right to enforce the arbitration clause.

(Emphasis added). Finding that the right to arbitration had been waived, the circuit court refused to enforce the agreement to arbitrate. From that ruling proceeds this appeal.[5] This Court will consider whether *1035 the circuit court erred in denying the motion to compel arbitration filed by Century 21 and Cindy Smith.

ANALYSIS

(1) Whether the circuit court erred in denying the motion to compel arbitration filed by Century 21 and Cindy Smith.

¶ 6. "This Court reviews questions of law de novo." Pre-Paid Legal Servs. v. Battle, 873 So.2d 79, 82 (Miss.2004) (citing Russell v. Performance Toyota, Inc., 826 So.2d 719, 721 (Miss.2002)). "[W]e have reviewed the grant or denial of a motion to compel arbitration under the de novo standard of review." Battle, 873 So.2d at 82 (citing Tupelo Auto Sales, Ltd. v. Scott, 844 So.2d 1167, 1169 (Miss.2003)).

Waiver

¶ 7. In Dean, Witter, Reynolds, Inc. v. Byrd, 470 U.S. 213, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985), the United States Supreme Court noted that:

[t]he House Report accompanying the [FAA] makes clear that its purpose was to place an arbitration agreement "upon the same footing as other contracts, where it belongs," H.R.Rep. No. 96, 68th Cong., 1st Sess., 1 (1924), and to overrule the judiciary's longstanding refusal to enforce agreements to arbitrate. This is not to say that Congress was blind to the potential benefit of the legislation for expedited resolution of disputes.

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Bluebook (online)
965 So. 2d 1031, 2007 WL 2325271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/century-21-maselle-and-assoc-v-smith-miss-2007.