Jericho Mgmt. Inc. v. Fidelity Nat. Title Ins. Company of Tennessee

811 So. 2d 514, 2001 Ala. LEXIS 269, 2001 WL 792781
CourtSupreme Court of Alabama
DecidedJuly 13, 2001
Docket1980537
StatusPublished
Cited by6 cases

This text of 811 So. 2d 514 (Jericho Mgmt. Inc. v. Fidelity Nat. Title Ins. Company of Tennessee) 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
Jericho Mgmt. Inc. v. Fidelity Nat. Title Ins. Company of Tennessee, 811 So. 2d 514, 2001 Ala. LEXIS 269, 2001 WL 792781 (Ala. 2001).

Opinion

811 So.2d 514 (2001)

JERICHO MANAGEMENT, INC.
v.
FIDELITY NATIONAL TITLE INSURANCE COMPANY OF TENNESSEE.

1980537.

Supreme Court of Alabama.

July 13, 2001.

Stephen D. Heninger of Heninger, Burge, Vargo & Davis, L.L.P., Birmingham; and John R. Lavette of Morris & Lavette, P.C., Birmingham, for appellant.

Guy V. Martin, Jr., and Mark S. Elwood of Martin, Rawson & Woosley, P.C., Birmingham, for appellee.

PER CURIAM.

This is the second time these parties have been before us. For an explanation of the facts giving rise to this dispute, see Fidelity National Title Insurance Co. of Tennessee v. Jericho Management, Inc., 722 So.2d 740 (Ala.1998) (Jericho I). In Jericho I, we reversed the order of the trial court denying a motion by Fidelity National Title Insurance Company of Tennessee ("Fidelity") to compel arbitration of claims made by Jericho Management, Inc. ("Jericho"); we remanded for the trial court to determine whether Fidelity had waived its right to arbitrate Jericho's claims. On remand, the trial court held that Fidelity had not waived its right to compel arbitration and, therefore, granted Fidelity's motion to compel arbitration.

Jericho filed a notice of appeal from the trial court's order granting Fidelity's motion to compel arbitration; we treat its notice of appeal as a petition for the writ of mandamus. See Henderson v. Superior Ins. Co., 628 So.2d 365 (Ala. 1993). "A petition for the writ of mandamus is the appropriate means by which to challenge a trial court's order compelling arbitration." Ex parte Hood, 712 So.2d 341, 343 (Ala.1998).[1]

*515 This Court has written: "A writ of mandamus is an extraordinary remedy that requires the showing of: (1) a clear legal right in the petitioner to the order sought; (2) an imperative duty on the respondent to perform, accompanied by a refusal to do so; (3) the lack of another adequate remedy; and (4) the properly invoked jurisdiction of the court." Ex parte McNaughton, 728 So.2d 592, 594 (Ala.1998).

Jericho argues that the trial court abused its discretion by compelling arbitration of its claims because, it asserts, Fidelity had waived its right to arbitrate by substantially invoking the litigation process by waiting "nineteen months without raising the issue of arbitration." Jericho further argues that Fidelity "refused to allow discovery ordered by the trial court and filed the first pleading referring to arbitration only after its attempts to block discovery were addressed by the trial court."

Fidelity argues that there are "extenuating circumstances" indicating that it did not waive its right to seek arbitration. In Companion Life Insurance Co. v. Whitesell Manufacturing, Inc., 670 So.2d 897, 899 (Ala.1995), this Court stated:

"Whether a party's participation in an action amounts to an enforceable waiver of its right to arbitrate depends on whether the participation bespeaks an intention to abandon the right in favor of the judicial process and, if so, whether the opposing party would be prejudiced by a subsequent order requiring it to submit to arbitration."

Fidelity asserts that it did not have a reasonable chance of compelling arbitration until the United States Supreme Court decided Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995). Fidelity relies on Ex parte Phelps, 672 So.2d 790 (Ala.1995). In Phelps, the defendant moved to compel arbitration on May 30, 1995, five months after the Supreme Court had released its decision in Allied-Bruce. This Court held:

"[U]ntil January 1995, [the defendant] could have reasonably believed that an attempt to compel arbitration would have been fruitless under our then existing law. Moreover, [the defendant] did move to compel arbitration fairly soon after the Supreme Court's decision in Allied-Bruce made it more practical to do so. Given these facts and given the strong federal policy favoring arbitration, we conclude that the trial court was acting well within its discretion in granting the motion to compel arbitration."

Phelps, 672 So.2d at 793.

Fidelity moved on July 31, 1995, to compel arbitration; that was only seven months after the Supreme Court had decided Allied-Bruce. Before moving to compel arbitration, but after the Supreme Court had decided Allied-Bruce, Fidelity responded to Jericho's interrogatories and requests for production of documents, participated in a deposition in which Jericho deposed Fidelity's former counsel, answered Jericho's amended complaint, and amended its answer to the original complaint. While Fidelity's involvement in the litigation process is greater than that of the defendant in Phelps, we do not believe that its involvement is so substantial as to indicate "an intention to abandon the right [to compel arbitration] in favor of the judicial process." Companion Life Ins. Co., 670 So.2d at 899.

Moreover, even if we were to conclude that Fidelity had substantially involved itself in the litigation process, we do not believe Jericho met its burden of showing that it was substantially prejudiced. See Companion Life Ins. Co., 670 So.2d at 899. *516 This Court has approved the proposition that "[e]ven if the [c]ourt assumes that there was invocation of the litigation process by the defendants, a finding of waiver cannot be made absent a showing of prejudice to the party opposing arbitration." Thompson v. Skipper Real Estate Co., 729 So.2d 287, 291 (Ala.1999)(quoting cases; quotation marks omitted). Again, we note that a party petitioning for the writ of mandamus must show a clear legal right to the order sought, McNaughton, 728 So.2d at 594, and that "[n]o rigid rule exists for determining what constitutes a waiver of the right to arbitrate; [this issue must be resolved] on the particular facts of each case." Companion Life Ins. Co., 670 So.2d at 899. Jericho has presented no facts indicating that it was substantially prejudiced by Fidelity's involvement in the litigation process.[2] Indeed, most of what has occurred in the present litigation after Allied-Bruce was decided has benefited Jericho.

For the foregoing reasons, we conclude that Fidelity did not waive its right to arbitrate and, thus, that the trial court acted within its discretion in compelling Jericho to arbitrate its claims against Fidelity. Accordingly, we deny Jericho's petition for the writ of mandamus.

WRIT DENIED.

HOUSTON, SEE, BROWN, HARWOOD, and STUART, JJ., concur.

MOORE, C.J., and LYONS, JOHNSTONE, and WOODALL, JJ., dissent.

JOHNSTONE, Justice (dissenting).

This case is the second time that these parties have been before us. Fidelity Nat'l Title Ins. Co. of Tennessee v. Jericho Mgmt., Inc., 722 So.2d 740 (Ala.1998) (Jericho I). In Jericho I, we reversed the order of the trial court denying Fidelity's motion to compel arbitration of Jericho's claims and remanded the cause to the trial court. However, this Court did not address the issue of whether Fidelity waived its right to arbitrate Jericho's claims.

On remand, Jericho asserted that Fidelity had waived its right to compel arbitration of its claims. The trial court, finding that "there has not been a waiver of the right to compel arbitration," granted Fidelity's motion to compel arbitration.

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811 So. 2d 514, 2001 Ala. LEXIS 269, 2001 WL 792781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jericho-mgmt-inc-v-fidelity-nat-title-ins-company-of-tennessee-ala-2001.