Dusold v. Porta-John Corp.

807 P.2d 526, 167 Ariz. 358, 71 Ariz. Adv. Rep. 29, 1990 Ariz. App. LEXIS 325
CourtCourt of Appeals of Arizona
DecidedOctober 11, 1990
Docket1 CA-CV 88-517
StatusPublished
Cited by42 cases

This text of 807 P.2d 526 (Dusold v. Porta-John Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dusold v. Porta-John Corp., 807 P.2d 526, 167 Ariz. 358, 71 Ariz. Adv. Rep. 29, 1990 Ariz. App. LEXIS 325 (Ark. Ct. App. 1990).

Opinion

OPINION

JACOBSON, Judge.

Plaintiff/appellant Robert Dusold (Du-sold) filed a negligence and products liability action against defendant/appellee Por-ta-John Corporation (Porta-John) and others, alleging that he suffered personal injuries from chemicals supplied by Porta-John. Porta-John moved to dismiss the complaint on the ground that an arbitration clause in the parties’ contract divested the trial court of subject matter jurisdiction over the action.

FACTS AND PROCEDURAL BACKGROUND

In 1985, Dusold began servicing and cleaning Porta-John’s portable toilets in Phoenix under a licensing agreement. The Service Contract Agreement (contract), drafted by Porta-John, contained a provision requiring arbitration in Michigan of “any controversy or claim arising out of, or relating to this agreement, or the breach thereof.”

Pursuant to this contract, Porta-John supplied Dusold with all chemicals required to clean and service the toilets. After several months, Dusold allegedly suffered injury from exposure to these chemicals. On December 31, 1986, Dusold filed a complaint against Porta-John and others, 1 alleging that Porta-John failed to warn him of the dangerous and toxic nature of these chemicals and also failed to provide him with adequate instructions for their safe use.

Porta-John moved to dismiss Dusold’s complaint pursuant to Rule 12(b)(1) and (6), Arizona Rules of Civil Procedure, contending that, as a result of the arbitration provision, arbitration in Michigan was Du-sold’s exclusive remedy for his personal injury tort claim and that, therefore, Du-sold’s complaint failed to state a claim upon which relief could be granted by an Arizona state court. In that same motion, Porta-John asked for an order compelling arbitration and staying judicial proceedings pursuant to A.R.S. § 12-1502.

In its minute entry following the hearing on Porta-John’s motion, the trial court expressed “some doubts about the fairness of compelling an Arizona Plaintiff in a multi-defendant tort case to arbitrate in Michigan his claim against the primary defendant.” Nevertheless, the court found that Du-sold’s claims “ar[o]se out of or relat[ed] to ... his agreement with Defendant Porta-John; they [were] for personal injuries Plaintiff received while performing on that agreement.” The court further found that both statute and case law required that all issues be resolved in favor of arbitration. The court granted Porta-John’s motion, entered judgment dismissing all claims against Porta-John, and ordered the parties to arbitrate those claims according to the terms of their contract. The judgment, which had been prepared and submitted by Porta-John and which conformed to the court’s minute entry order, contained Rule 54(b) language that the court found “no just reason for delay in entry of the judgment of dismissal as to defendant Porta-John.” See Rule 54(b), Arizona Rules of Civil Procedure.

Dusold timely appealed from that judgment, claiming:

(1) that the arbitration clause in the contract applied only to contract disputes and not to personal injury tort claims;
(2) that even if the clause was found to be broad enough to include personal injury claims, application of it to Du-sold’s personal injury claim abrogated his *360 constitutional right to recover damages in a trial by jury in Arizona; and
(3) that, even if the arbitration agreement was valid as to Dusold’s personal injury claims and did not violate his constitutional rights, then either (a) the superior court did not have power to compel arbitration in another state, or (b) it was unreasonable in this case, and/or against the public policy of Arizona, to require arbitration in Michigan.

On January 17, 1989, along with its answering brief, Porta-John filed a motion to dismiss the appeal on the ground that an order compelling arbitration is a nonappealable, interlocutory order under Roeder v. Huisk, 105 Ariz. 508, 467 P.2d 902 (1970). This court ordered postponement of Porta-John’s jurisdictional argument until disposition on the merits. We first address the jurisdictional question.

JURISDICTION

Porta-John asserts that an order of the trial court compelling arbitration is interlocutory and therefore not appealable pursuant to A.R.S. § 12-2101.01 2 and Roeder v. Huish.

Dusold argues that the order challenged here resulted in a judgment dismissing all claims against Porta-John, while the order in Boeder was simply an order granting the defendant’s application for arbitration and for stay of proceedings pending arbitration, and, thus, Boeder is distinguishable. Further, Dusold points out, the court specifically included Rule 54(b) language in its judgment and left no claims pending before the trial court as to Porta-John. The judgment, submitted by Porta-John and adopted in full by the court, states in pertinent part:

1. All claims against defendant Por-ta-John corporation are dismissed and defendant Porta-John is dismissed from this action.
2. The parties are ordered to arbitrate those claims in the State of Michigan according to the terms of their contract.
3. There is no just reason for delay in entry of judgment as to defendant Por-ta-John.

Porta-John argues that an order to arbitrate is by its nature interlocutory, and the trial court cannot transform it into a final order simply by incorporating it within a final judgment. Thus, Porta-John asks this court to either dismiss the appeal because of the intrinsically interlocutory nature of the arbitration order or to remand to the trial court for issuance of an order compelling arbitration and staying proceedings pending the outcome of arbitration.

We begin our analysis with a comparison of the proceedings here with those in Boe-der. In both cases, the parties had entered a contract containing a standard arbitration clause. 105 Ariz. at 509, 467 P.2d at 903. In Boeder, the defendants had filed an application requesting the court to compel arbitration pursuant to the terms in their contract. Id. The plaintiffs objected. The trial court granted the defendants’ application and ordered the parties to arbitrate. Prior to arbitration, the plaintiffs appealed from the trial court’s order. The court of appeals dismissed the appeal on the ground that “the order which is the subject of the appeal is an interlocutory order, not expressly made subject to an appeal and, therefore, is not an appealable order.” Id. On petition for review, the Arizona Supreme Court upheld the court’s dismissal of the appeal and further held that an objecting party could “raise the issue of arbitra- *361 bility ...

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Cite This Page — Counsel Stack

Bluebook (online)
807 P.2d 526, 167 Ariz. 358, 71 Ariz. Adv. Rep. 29, 1990 Ariz. App. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dusold-v-porta-john-corp-arizctapp-1990.