Routh v. Snap-On Tools Corp.

423 S.E.2d 791, 108 N.C. App. 268, 1992 N.C. App. LEXIS 925
CourtCourt of Appeals of North Carolina
DecidedDecember 15, 1992
Docket9121SC695
StatusPublished
Cited by56 cases

This text of 423 S.E.2d 791 (Routh v. Snap-On Tools Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Routh v. Snap-On Tools Corp., 423 S.E.2d 791, 108 N.C. App. 268, 1992 N.C. App. LEXIS 925 (N.C. Ct. App. 1992).

Opinion

WALKER, Judge.

In this appeal, defendants question the validity of the trial court’s order which concluded there was no agreement to arbitrate. According to defendants, their motion to arbitrate should have been granted since plaintiff Donald Routh’s signature appears on page two (2) of the Termination Agreement wherein there is contained an agreement to arbitrate all controversies. Furthermore, defendants contend that plaintiffs cannot now maintain an action (by arbitration or otherwise) since plaintiffs failed to comply with the one year limitations period contained in paragraph six (6) of the Termination Agreement.

Initially, we note that public policy favors settling disputes by means of arbitration. Prime South Homes, Inc. v. Byrd, 102 N.C.App. 255, 401 S.E.2d 822 (1991). However, before a dispute can be settled in this manner, there must first exist a valid agreement to arbitrate. G.S. § 1-567.2. The law of contracts governs the issue of whether there exists an agreement to arbitrate. Southern Spindle and Flyer Co., Inc. v. Milliken & Co., 53 N.C.App. 785, 281 S.E.2d 734 (1981), disc. review denied, 304 N.C. 729, 288 S.E.2d 381 (1982). Accordingly, the party seeking arbitration must show *272 that the parties mutually agreed to arbitrate their disputes. Id. This Court has even suggested that an agreement to arbitrate, if contained in a contract covering other topics, must be independently negotiated. Blow v. Shaughnessy, 68 N.C.App. 1, 16, 313 S.E.2d 868, 876-877, disc. review denied, 311 N.C. 751, 321 S.E.2d 127 (1984). This apparent requirement for independent negotiation underscores the importance of an arbitration provision and “militates against its inclusion in contracts of adhesion.” Id. at 16, 313 S.E.2d at 877.

In the case at bar, the trial court’s conclusion that the arbitration agreement was unenforceable was based upon its finding of fact that:

(12) At the time Don Routh signed the agreement agreeing to repay Snap-On One Thousand ($1,000.00) Dollars a month until his balance was paid, he did not realize he was signing a Termination Agreement that contained an arbitration provision and Plaintiff Don Routh had no intention to be bound by the terms of the Termination Agreement.

Findings of fact made by the trial court in a non-jury trial have the force and effect of a jury verdict and are conclusive on appeal if there is competent evidence to support them, although the evidence might have supported findings to the contrary. Henderson County v. Osteen, 297 N.C. 113, 254 S.E.2d 160 (1979). Accordingly, in reviewing the decision of the trial court, we must determine whether there is evidence in the record which supports the trial court’s findings of fact and if so, whether these findings of fact in turn support the conclusion that there was no agreement to arbitrate. Prime South Homes, Inc. v. Byrd, supra.

The trial court considered plaintiff Don Routh’s 23 April 1991 affidavit which was filed four days before reargument of the motion to compel arbitration. On appeal, defendants contend this document should not have been admitted into evidence since it contradicted plaintiff’s earlier deposition. After reviewing the evidence, we find no merit in defendants’ argument. Plaintiff’s affidavit only conflicted with his prior deposition in regards to the date in November 1987 when the Termination Agreement was signed. In his affidavit and deposition, plaintiff maintains that defendants did not review the Termination Agreement with him, that he never read this document, and that the only reason he signed the document was to acknowledge he owed Snap-On $5,900. We further note from *273 the record that defendants failed to object to plaintiff’s affidavit being received into evidence. Where no objection or exception is made at trial to the introduction of evidence, the appellant may not challenge the item on appeal. Rule 10(b)(1), N.C. Rules of Appellate Procedure; Catoe v. Helms Construction & Concrete Co., 91 N.C.App. 492, 372 S.E.2d 331 (1988).

We now turn to the primary issue in this case which is whether the trial court properly concluded as a matter of law that plaintiff and defendants did not have a meeting of the minds regarding an agreement to arbitrate and thus no enforceable agreement.

Before a valid contract can exist, there must be mutual agreement between the parties as to the terms of the contract. Normile v. Miller and Segal v. Miller, 313 N.C. 98, 326 S.E.2d 11 (1985). Where there is no mutual agreement, there is no contract. If a question arises concerning a party’s assent to a written instrument, the court must first examine the written instrument to ascertain the intention of the parties. See Corbin v. Langdon, 23 N.C.App. 21, 208 S.E.2d 251 (1974). When the language of the contract is clear and unambiguous, the court must interpret the contract as written. Robbins v. C. W. Meyers Trading Post, Inc., 253 N.C. 474, 117 S.E.2d 438 (1960). However, where an agreement is ambiguous, interpretation of the contract is a question for the fact-finder to resolve, Thompson-Arthur Paving Co. v. Lincoln Battleground Associates, Ltd., 95 N.C.App. 270, 382 S.E.2d 817 (1989), and parol or extrinsic evidence is admissible to explain or qualify the written instrument. Root v. Allstate Insurance Co., 272 N.C. 580, 158 S.E.2d 829 (1968).

As previously noted, plaintiff’s signature appears only after the language added to the Termination Agreement and not on the line designated for his signature. Both parties agree that the sentence immediately preceding plaintiff’s signature is an addition to the original standard Termination Agreement. Since plaintiff signed below only the added language whereby he agreed to repay Snap-On $1000 per month and not on the applicable signature line, an ambiguity results as to whether plaintiff agreed to all the terms contained in the Termination Agreement or merely those terms in the added sentence immediately preceding his signature. Since this instrument is susceptible to more than one meaning, the trial court properly admitted extrinsic evidence to explain this ambiguity. Root v. Allstate Insurance Co., supra.

*274

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Canteen v. Charlotte Metro Credit Union
Supreme Court of North Carolina, 2024
JRM, Inc. v. The HJH Cos.
Court of Appeals of North Carolina, 2023
Canteen v. Charlotte Metro Credit Union
Court of Appeals of North Carolina, 2022
Register v. Wrightsville Health Holdings
Court of Appeals of North Carolina, 2020
Hager v. Smithfield E. Health Holdings, LLC
826 S.E.2d 567 (Court of Appeals of North Carolina, 2019)
Hall v. Dancy
2018 NCBC 61 (North Carolina Business Court, 2018)
T.M.C.S., Inc. v. Marco Contr'rs
Court of Appeals of North Carolina, 2015
T.M.C.S., Inc. v. Marco Contractors, Inc.
780 S.E.2d 588 (Court of Appeals of North Carolina, 2015)
Adams v. Citicorp Credit Services, Inc.
93 F. Supp. 3d 441 (M.D. North Carolina, 2015)
Cold Springs Ventures, LLC v. Gilead Sci., Inc.
2015 NCBC 1 (North Carolina Business Court, 2015)
Capps v. Blondeau
2014 NCBC 24 (North Carolina Business Court, 2014)
Barker v. Fox Den Acres, Inc. (In re Barker)
510 B.R. 771 (W.D. North Carolina, 2014)
Cold Springs Ventures, LLC v. Gilead Scis., Inc.
2014 NCBC 10 (North Carolina Business Court, 2014)
MORTON v. IVEY, McCLELLAN, GATTON & TALCOTT, LLP
2013 NCBC 23 (North Carolina Business Court, 2013)
King v. Bryant
737 S.E.2d 802 (Court of Appeals of North Carolina, 2013)
Southeastern Paper Group, Inc. v. Sunburst Chemicals, Inc.
2012 NCBC 15 (North Carolina Business Court, 2012)
Carter v. TD AMERITRADE HOLDING CORP.
721 S.E.2d 256 (Court of Appeals of North Carolina, 2012)
Ellison v. Alexander
700 S.E.2d 102 (Court of Appeals of North Carolina, 2010)
McDonald v. BILTMORE HOMES, LLC
687 S.E.2d 318 (Court of Appeals of North Carolina, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
423 S.E.2d 791, 108 N.C. App. 268, 1992 N.C. App. LEXIS 925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/routh-v-snap-on-tools-corp-ncctapp-1992.