Ryan's Family Steak Houses, Inc. v. Regelin

735 So. 2d 454, 1999 Ala. LEXIS 115, 76 Empl. Prac. Dec. (CCH) 46,181, 1999 WL 254529
CourtSupreme Court of Alabama
DecidedApril 30, 1999
Docket1980186
StatusPublished
Cited by27 cases

This text of 735 So. 2d 454 (Ryan's Family Steak Houses, Inc. v. Regelin) 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
Ryan's Family Steak Houses, Inc. v. Regelin, 735 So. 2d 454, 1999 Ala. LEXIS 115, 76 Empl. Prac. Dec. (CCH) 46,181, 1999 WL 254529 (Ala. 1999).

Opinion

735 So.2d 454 (1999)

RYAN'S FAMILY STEAK HOUSES, INC., et al.
v.
Tammy REGELIN et al.

1980186.

Supreme Court of Alabama.

April 30, 1999.

*455 Stephen F. Fisher of Jackson, Lewis, Schnitzler & Krupman, Greenville, SC; and Finis St.John of St.John & St.John, Cullman, for appellants.

Gregory A. Nicholas and William D. Sulzby, Jr., Cullman, for appellees.

HOUSTON, Justice.

Ryan's Family Steak Houses, Inc., and two of its managers, Randy Mullins and Scott Moats, are defendants in an action pending in the Cullman Circuit Court. (Hereinafter the defendants are referred to collectively as "Ryan's.") They appeal from an order denying their motion to compel arbitration. An appeal is the generally accepted method of review when a trial court denies a motion to compel arbitration. Nissan Motor Acceptance Corp. v. Ross, 703 So.2d 324 (Ala.1997). We reverse and remand.

Tammy Regelin, Lisa Vandergrift, Paula Price, Tina Jones, Windi Self, and Brandi Hunt, all of them employees of Ryan's, brought this action against Ryan's, seeking money damages for invasion of privacy, the tort of outrage, assault and battery, and negligent training and supervision; all the claims arose from sexually inappropriate conduct they say occurred in the workplace. Ryan's moved to dismiss or, in the alternative, to compel arbitration, based upon arbitration agreements that were executed by each of the plaintiffs when they were hired by Ryan's. The plaintiffs filed an amended complaint naming Employment Dispute Services, Inc. ("EDSI"), as a defendant; seeking damages for fraud in the inducement; and seeking to reform their contracts of employment. After a hearing on the motion to dismiss or to compel arbitration, the trial court denied the motion.

Each of the plaintiffs signed an application for employment that contained the following statement at the top:

"THE ENTIRE APPLICATION FORM MUST BE COMPLETED AS WELL AS THE ATTACHED ARBITRATION AGREEMENT PRIOR TO BEING CONSIDERED FOR HIRE!"

Each of the plaintiffs, by signing the application, agreed to arbitrate employment-related disputes; the application they signed had attached to it a separate document (which they also signed) that contained the following provision:

"Your potential Employer (`signatory company' or `Company') has entered into an agreement with Employment Dispute Services, Inc. (EDSI) to arbitrate and resolve any and all employment-related disputes between the Company's employees (and job applicants) and the Company. The following Agreement between You and EDS is a `selection of forum' agreement by which you agree that employment-related disputes between You and the Company shall be resolved through arbitration. Any arbitration matter shall be heard and decided under the provisions and the authority of the Federal Arbitration Act, 9 USC sec. 1, as applicable.
*456 "The purpose of this agreement is to provide You and the Company a forum in which claims or disputes with the Company and any other signatories may be resolved by arbitration rather than litigation. This Agreement does not restrict you from filing a claim or charge with any state or federal agency, for example, Equal Employment Opportunity Commission, state unemployment agency, state workers' compensation commission, where applicable. Rather, the Agreement applies only to State or Federal court proceedings.
". . . .
"1. Any employment-related dispute between the Company, Me, and/or other signatories which would otherwise be brought in State or Federal court shall be brought ONLY in the EDS arbitration forum and under EDS Rules and Procedures, as modified or amended from time to time. Other signatories to the same Agreement with EDS may be, for example, supervisors, managers, and agents of the Company.
"2. In consideration of the agreement by EDS to provide an arbitration forum, Rules and Procedures, and a hearing and decision based upon any claim or dispute I (employee/job applicant) may file or defend, I understand and agree to the following:
"A. Except as to claims or charges actually handled within a State or Federal agency, any and all disputes I may have with the Company, or that Company, its supervisors, managers or other agents may have with Me which would otherwise be decided in court, shall be resolved only through arbitration in the EDS forum and NOT THROUGH LITIGATION IN STATE OR FEDERAL COURT.
"B. The decision of EDS arbitration panel is final and binding on all parties. There is no appeal by any party on the merits of the dispute either to State or Federal court.
"C. This agreement is with EDS, not the Company, and is not, nor is it intended to be, an employment contract or any part of an employment contract. This agreement does not affect or alter My `at will' employment relationship with the Company.
"D. The Company and any other successor or assign, its signatory supervisors, managers, and other agents, are `third party beneficiary' of My agreement with EDS, and I am a `third party beneficiary' of others' agreements with EDS. A `third party beneficiary' is someone who benefits legally from a contract between two other parties.
"E. I absolutely must use the EDS forum for any and all employment-related disputes and/or claims and/or related tort claims I may have against the Company and all other signatories of this agreement which would otherwise be brought in court, even if the Agreement has been terminated since the date of the claim...."

Ryan's is a South Carolina-based multistate restaurant chain; it purchases food products, advertising, and many other products and services from vendors throughout the United States. (Affidavit, James Randolph Hart, vice president for human resources for Ryan's, filed in support of the motion to compel arbitration.) The plaintiffs were at-will employees of Ryan's at one of its restaurants in Alabama, where Ryan's does business pursuant to Ala.Code 1975, § 10-3A-170. Clearly, the operation of Ryan's was commerce in fact, because it involved a multistate company that obtained, from outside Alabama, supplies to achieve its business purposes. Allied-Bruce Terminix Cos., Inc. v. Dobson, 513 U.S. 265, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995).

"A written provision in any ... contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... shall be valid, *457 irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."

9 U.S.C. § 2.

On July 1, 1998, the trial court set the motion to dismiss or to compel arbitration for a hearing on August 21, 1998. There is no record of the hearing before this Court. The case action summary, which is before us, does show that on August 24, 1998, "after hearing," the trial judge denied the motion to dismiss or to compel arbitration.

The plaintiffs' brief contains the following in its "statement of the case":

"On August 21, 1998, a hearing was held on Ryan's Motion to Dismiss and Petition to Compel Arbitration. No evidence was presented at the hearing."

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735 So. 2d 454, 1999 Ala. LEXIS 115, 76 Empl. Prac. Dec. (CCH) 46,181, 1999 WL 254529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryans-family-steak-houses-inc-v-regelin-ala-1999.