May Const. Co., Inc. v. Thompson

20 S.W.3d 345, 341 Ark. 879, 2000 Ark. LEXIS 362
CourtSupreme Court of Arkansas
DecidedJuly 7, 2000
Docket00-364
StatusPublished
Cited by18 cases

This text of 20 S.W.3d 345 (May Const. Co., Inc. v. Thompson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
May Const. Co., Inc. v. Thompson, 20 S.W.3d 345, 341 Ark. 879, 2000 Ark. LEXIS 362 (Ark. 2000).

Opinions

LAVENSKI R. SMITH, Justice.

Petitioner May Construction Company (“May”) ice. this Petition for Writ of Prohibition in response to an order entered by the Pulaski County Circuit Court to compel discovery in an arbitration matter between May and Respondent Riverdale Development Company (“Riverdale”). May and Riverdale signed a contract for construction of a commercial office building on August 30, 1996. They included in the contract a term for mandatory binding arbitration for any breach-of-contract claims. As the project neared completion, May and Riverdale vigorously disputed each others performance adequacy in that contract. The issue presented by this case is whether, on the face of the record before us, the Circuit Court committed a plain, manifest, clear, and gross abuse of discretion in ordering May to comply with discovery requests in a civil action which was simultaneously pending in arbitration. We hold it did not and deny the writ.

On May 13, 1999, May filed a demand for arbitration with the American Arbitration Association, claiming that Riverdale had failed to pay approximately $33,000 owed under the contract. Riverdale responded by filing a complaint in the Pulaski County Circuit Court on May 25, 1999, alleging that May failed to perform certain requirements under the contract and also acted negligendy and deceitfully in the performance of the work and construction of the building. Riverdale followed this complaint with a Motion to Stay Arbitration filed on June 1, 1999. On that same day, the circuit court held a hearing on the motion by teleconference. The circuit court denied Riverdale’s Motion to Stay Arbitration in an order dated June 7, 1999. The court also stayed discovery in the circuit court action pending resolution of the arbitration proceeding. However, the circuit court’s order reserved the right to the court to compel discovery in the arbitration matter should the parties apply to the court and indicate that the arbitration discovery had become ineffective.

On June 21, 1999, May filed a Motion to Dismiss the circuit court complaint alleging that the complaint filed by Pdverdale in circuit court sought to litigate issues related to those in the arbitration proceeding, and that Riverdale’s response to and counterclaim in the arbitration request acted as an irrevocable election that rendered the pleadings in circuit court moot. Riverdale responded on June 30, 1999, and argued that while its Motion to Stay Arbitration was denied, the circuit court did not stay discovery in that lawsuit and would direct discovery upon application by either party during arbitration. The record and abstract do not indicate whether the circuit court ever ruled on this motion.

Under the auspices of the arbitrator, the parties initiated discovery. However, according to Riverdale’s pleadings, May failed to comply with repeated requests for certain discovery, thus requiring Riverdale to seek an order from the arbitrator on October 14, 1999, to compel discovery. The motion contained requests for specific documents, which Riverdale had previously requested but May had failed to provide. On November 1, 1999, Arbitrator Bill S. Clark granted Riverdale’s motion ordering May to provide all of the items requested in the motion. At Riverdale’s request, the arbitrator also issued a subpoena duces tecum to William “Bud” Oldner, a design engineer with Ruffin Building Systems (“Ruffin”) who May had hired. Following the issuance of the subpoena, Riverdale sent three letters to Ruffin’s attorneys requesting Oldner’s presence at a deposition and requesting the documents indicated in the subpoena. Apparently, Ruffin and Oldner ignored these requests and the subpoena.

Due to this failure to comply, Riverdale filed with the arbitrator a Motion to Dismiss or Alternatively for Sanctions on November 15, 1999, requesting May’s demand for arbitration be dismissed with prejudice for failure to comply with discovery and requesting sanctions for failure to comply with the arbitrator’s orders. Riverdale responded on December 1, 1999, contending it had no responsibility for Ruffin’s or Oldner’s failures to comply with the discovery requests. The record and abstract are devoid of any resolution to these motions. However, May contends in its brief that the arbitrator, at a hearing on January 20, 2000, refused to enforce his earlier order or subpoena based on the fact that Ruffin and Oldner were located in Louisiana and were outside of the arbitrator’s “jurisdiction.” May further contends that the arbitrator decided to allow Oldner to testify without producing the requested documents because Riverdale could have deposed Oldner in October, 1999. The record and transcript, however, do not contain any orders or transcripts of the arbitrator’s supposed ruling on this issue.

On January 21, 2000, Riverdale filed its Motion to Compel Discovery in the Pulaski County Circuit Court after May and Ruffin failed to comply with the previous orders and subpoenas from the arbitrator. Riverdale argued in its motion that May should not be allowed to recover the alleged breach damages, nor should Oldner or any other representative of Ruffin be allowed to testify for May at the arbitration hearing without producing the discovery requested of it or its suppliers to Riverdale. Riverdale also filed a Motion for Continuance in the arbitration on January 31, 2000, due to the pending motion in circuit court. May responded to this motion on February 2, 2000, arguing that the arbitrator had already denied essentially the same motion. Furthermore, May argued that Riverdale made the discovery requests to entities and people who were outside the court’s jurisdiction, and that the circuit court did not have the power to order discovery in the underlying matter because of the arbitration. May also argued that Riverdale’s motion was an attempt to delay the arbitration due to its own failure to properly perform permitted discovery in time before the arbitration hearing scheduled for February, 2000.

The circuit court held a hearing on February 3, 2000, on Riverdale’s discovery motion. Apparently, the circuit judge announced his ruling from the bench and then issued the orders, nunc pro tunc, on March 2, 2000, requiring May to comply with Riverdale’s discovery requests in the arbitration. Interestingly, the circuit court issued three orders on March 2, each requiring the parties to perform certain actions. Specifically, in the first order, the circuit court ordered that May was to collect and have available for inspection and copying all of its documents relating to the contract dispute within three days of the order, and that Riverdale could proceed at its option to redepose Oldner and to obtain relevant information from Ruffin. Alternatively, May would be barred from using information or testimony from Ruffin during the arbitration hearing if the information were not provided. Also, the circuit court ordered the arbitration stayed until May complied with that order.

In its second order, the court ordered Riverdale to file its Notice of Deposition of Oldner in that court and in the appropriate Louisiana court. The circuit court again ordered that May produce the requested documents, and also took under advisement Riverdale’s request to disqualify Ruffin’s representatives from testifying as well as Riverdale’s request that its Requests for Admissions be deemed admitted for May’s failure to timely answer them.

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May Const. Co., Inc. v. Thompson
20 S.W.3d 345 (Supreme Court of Arkansas, 2000)

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Bluebook (online)
20 S.W.3d 345, 341 Ark. 879, 2000 Ark. LEXIS 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/may-const-co-inc-v-thompson-ark-2000.