Sankey v. Sears, Roebuck and Co.

100 F. Supp. 2d 1290, 2000 U.S. Dist. LEXIS 8603, 2000 WL 776613
CourtDistrict Court, M.D. Alabama
DecidedJune 8, 2000
DocketCIV.A. 00-A-455-N
StatusPublished
Cited by3 cases

This text of 100 F. Supp. 2d 1290 (Sankey v. Sears, Roebuck and Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sankey v. Sears, Roebuck and Co., 100 F. Supp. 2d 1290, 2000 U.S. Dist. LEXIS 8603, 2000 WL 776613 (M.D. Ala. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

ALBRITTON, Chief Judge.

I. INTRODUCTION

This cause is before the court on Defendant Sears, Roebuck and Company’s (“Sears”) Motion to Compel (Doc. #4) filed on April 18, 2000.

This case was originally filed by the Plaintiff Mary Lee Sankey (“Sankey”) in the Circuit Court of Montgomery, Alabama on February 16, 2000. Sears filed a Notice of Removal on April 13, 2000, alleging jurisdiction pursuant to 28 U.S.C. § 1332. Sankey is a citizen of Alabama and Sears is a corporation incorporated under the laws of New York, with its principal place of business in Illinois. Damages of more than $75,000 have been alleged.

Sears contends that the only avenue available to Sankey for resolution regarding charges placed on her Sears Credit Card is binding arbitration and has therefore filed this Motion to Compel. For the reasons to be discussed, Sears’ Motion to Compel is due to be granted in part and denied in part.

II. FACTS

Sankey executed a contract with Sears entitled Pest Control Customer Agreement (“the Agreement”) with an effective date of August 24, 1995. In the Agreement, Sears agreed to treat Sankey’s home for ants, roaches, spiders, crickets, silverfish, and palmetto bugs for one year for the sum of $380. The Agreement allowed for three consecutive, one year renewals of the pest control plan at a rate of $380 per year. The Agreement also contained an arbitration clause that stated:

The purchaser and All American Termite & Pest Control, Inc. dba/Sears Authorized Termite & Pest Control agree that any controversy or claim between them arising out of or relating to the interpretation, performance or breach of any provision of this agreement shall be settled exclusively by arbitration. This contraet/agreement is subject to arbitration pursuant to the Uniform Arbitration Act of the American Arbitration Association. The arbitration award may be entered in any court having jurisdiction. In no event shall either party be liable to the other for indirect, special or consequential damages or loss of anticipated profits.

See Def. Exh. A. In 1998, Sankey entered into a Subterranean Termite Control Residential Customer Agreement (“Termite Agreement”) with Sears. See Def. Exh. B. The Termite Agreement also contained an arbitration clause:

The Customer and Sears agree that any and all claims or disputes arising out of, in connection with, or in relation to the interpretation, performance or breach of any provisions of this Agreement shall be resolved, on an individual basis, by final and binding arbitration ... This arbitration provision does [sic] to apply to any claim or dispute relating to the financing of or payment for this Agreement, any claim or dispute relating to any security interest in goods or services or any agreement or disclosure relating to any financing, payment or security interest.

See id. ¶ ll. 1

Sankey applied for a Sears Credit Card allegedly because a Sears representative suggested that this was how Sears “pre *1293 ferred” to be paid under the pest control Agreement. See Complaint ¶ 3. In August of 1996, 1997, and 1998, Sears charged Sankey’s Sears Credit Card $380 for pest control treatments. In April of 1999, Sears placed a $200 charge for termite and pest control services on Sankey’s Sears Credit Card.

In addition to pest control and termite payments, Sears also made other charges to Sankey’s Sears Credit Cart. In September of 1996, Sears charged Sankey $39 for “Loss/Stolen Card Service.” In October of 1997, Sears charged $49.95 for Sears’ “Discount Travel Club.” Then in December of 1998, Sears charged Sankey $54.95 for Sears’ “Discount Travel Club.” On at least six occasions Sears also charged Sankey for Sears’ “Credit Protection Plan.” 2 Finally, Sears charged Sankey $200 in late payment fees.

In her Complaint, Sankey asserts that none of these charges were authorized by her. She alleges three counts against Sears and a fourth count against fictitious defendants. Count I is a claim for fraud. See Complaint ¶¶ 14-19. Count II is a claim for breach of contract. See id. ¶¶ 20-23. Finally, Count III is a claim for negligence or wantonness. See id. ¶¶ 24-27. In Counts I and III, Sankey seeks compensatory and punitive damages not to exceed $74,999, and in Count II she seeks compensatory damages not to exceed $74,-999. See id. Wherefore clauses.

III. DISCUSSION

In order to determine whether Sankey must arbitrate her claim, the court must determine whether her claims are arbitra-ble and, if they are, whether the arbitration clause is valid.

A. Arbitrability

The Federal Arbitration Act (“FAA” or “the Act”), governs arbitration in this case. See 9 U.S.C. §§ 1-16. Pursuant to § 2 of the FAA, a written arbitration “provision in any ... contract evidencing a transaction involving commerce ... [is] valid, 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. By its terms, the Act requires district courts to direct the parties to proceed to arbitration on issues as to which an arbitration agreement has been signed. See Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 218, 105 S.Ct. 1238, 84 L.Ed.2d 158 (1985). The purpose of the Act was to ensure judicial enforcement of privately-negotiated arbitration agreements. See id. at 219, 105 S.Ct. 1238. The Act places an arbitration agreement “upon the same footing as other contracts.” H.R.Rep. No. 96, 68th Cong., 1st Sess., 1 (1924).

There is no dispute between the parties that the transactions in question involved interstate commerce. Thus, the FAA governs this dispute. Sears implicitly invokes sections 3 and 4 of the FAA in its Motion to Compel arguing that Sankey must arbitrate her claims against Sears and the court must stay the proceedings.

Section 4 of the FAA allows a “party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement” to petition the court “for an order directing that such arbitration proceed.” 9 U.S.C. § 4. When a court is “satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue,” the court is required to “make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement.” Id.

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Bluebook (online)
100 F. Supp. 2d 1290, 2000 U.S. Dist. LEXIS 8603, 2000 WL 776613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sankey-v-sears-roebuck-and-co-almd-2000.