Shroyer v. Foster

814 So. 2d 83, 2002 WL 472008
CourtLouisiana Court of Appeal
DecidedMarch 28, 2002
Docket2001 CA 0385
StatusPublished
Cited by12 cases

This text of 814 So. 2d 83 (Shroyer v. Foster) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shroyer v. Foster, 814 So. 2d 83, 2002 WL 472008 (La. Ct. App. 2002).

Opinion

814 So.2d 83 (2002)

Roy Allen SHROYER and Allyson Sloane Shroyer
v.
Claude E. FOSTER, Mary A. Foster, Reda Cockerham, Latter & Blum, Inc., D/B/A C.J. Brown Realtors, Randy Langlois, Diamond Realty, Central Pest Control Company, ABC Insurance Company, Michael Lebas, A Professional Home Inspection Company, Inc. and XYZ Insurance Company.

No. 2001 CA 0385.

Court of Appeal of Louisiana, First Circuit.

March 28, 2002.

*84 Andre' P. Gauthier, Gonzales, Counsel for Plaintiffs/Appellees Roy Allen Shroyer Allyson Sloane Shroyer.

Darlene Simmons, Orlando, FL, Dale M. Maas, Baton Rouge, Counsel for Defendants/Appellees Claude E. Foster, Mary A. Foster.

Jonathan M. Lake, New Orleans, Counsel for Defendants/Appellees Reda Cockerham and C.J. Brown Realtors.

*85 Kevin P. Landreneau, Baton Rouge, Counsel for Defendant/Appellee Central Pest Control Company.

Linda S. Melancon, Gonzales, Counsel for Defendants/Appellants Michael LeBas and A Professional Home Inspection Company, Inc.

Before: GONZALES, KUHN, and CIACCIO[1], JJ.

KUHN, J.

In this appeal, we address whether an arbitration provision in a contract signed by a husband binds his wife. We conclude that when the non-signatory spouse sues for damages based on an alleged breach of that contract, she cannot disavow the arbitration agreement that forms a part of that contract. We also consider whether claims asserted against a principal's employee are subject to the contractual provisions that are applicable to the principal under the terms of the arbitration clause. Because the claims asserted against the employee are based on the same facts as the claims asserted against the principal, we determine the arbitration agreement applies to claims against the employee. In the proceedings below, the party seeking to enforce the arbitration clause filed a declinatory exception raising the objection of prematurity, which was denied by the trial court. We reverse and render judgment sustaining the exception.

FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff's, Roy Allen Shroyer and Allyson Sloane Shroyer, filed suit against defendants, Claude E. Foster and Mary A. Foster. According to the Shroyers' allegations, they purchased a house from the Fosters and later discovered that the house had numerous hidden and latent defects. These alleged defects included roofing and flashing problems, rotten wood in numerous areas of the house, damage to the ceiling and wall of the home resulting from a prior termite infestation, problems with the air conditioning unit, a failed chimney encasement, and structural problems involving the ridge beams. Asserting that the Fosters were aware of these defects but failed to disclose them, the Shroyers seek to have the sale rescinded based on Louisiana's redhibition law.[2]

The Fosters answered, generally denying the allegations of the Shroyers' petition, and filed a third-party demand, naming Michael LeBas and A Professional Home Inspection Company, Inc. ("PHI") as third-party defendants.[3] The Fosters assert that LeBas, acting on behalf of PHI, inspected the house and issued a report based on his findings before they sold the house to the Shroyers. The Fosters claim that if any defects existed, LeBas was negligent in failing to detect them. The Fosters urge that if they are found liable on the principal demand, LeBas and PHI should be held liable to them.

In response, LeBas and PHI filed a dilatory exception raising the objection of prematurity. Therein, they assert that PHI performed its inspection pursuant to an agreement that mandates arbitration of the Fosters' claims. The Fosters opposed the exception urging that they should not *86 be ordered to arbitrate because: 1) Mrs. Foster did not sign the inspection agreement that contains the arbitration clause; 2) LeBas, the inspector, was not a party to the agreement individually, and thus, the claims against him personally would not be subject to arbitration; 3) arbitration of the third-party claim would not resolve the original claim brought by the Shroyers; and consequently, 4) arbitration would not bring about a speedy resolution to the entire matter. When the trial court denied the exception, LeBas and PHI applied to this court for supervisory writs. Recognizing that the judgment denying the exception was an interlocutory judgment subject to immediate appeal, this court denied the writ but remanded the case to the district court with instructions to grant an appeal.[4] This court further ordered a stay of the proceedings in the district court involving LeBas and PHI. Shroyer v. Foster, OO CW 0901 (La.App. 1st Cir.6/02/2000). Following that action, the trial court signed an order of appeal and continued the approaching trial without resetting a trial date.

On appeal, LeBas and PHI argue that the trial court erred in finding that the arbitration clause did not require the Fosters to arbitrate the claims asserted in their third-party demand. LeBas and PHI assert that the trial court improperly considered whether arbitration would affect a speedy resolution of the entire suit in determining whether to enforce the arbitration clause. They contend that Mrs. Foster is bound by the terms of the inspection agreement signed by Mr. Foster, maintaining that the inspection agreement represents a community obligation. Additionally, they argue that the arbitration agreement encompasses the Fosters' claims against LeBas.

The Fosters argue that their third-party claims should not be subject to arbitration because the original demand is not subject to arbitration. They contend that the object of arbitration is the speedy disposition of differences through informal procedures without resort to court action. They assert that because the third-party demand is "inextricably intertwined" with the facts of the original demand, this object will not be served by enforcing the arbitration agreement in this instance. The Fosters maintain that Mrs. Foster is not bound by the terms of the inspection agreement because she did not sign it. The Fosters do not assert any specific argument challenging the allegations that their claims against LeBas should be subject to arbitration.

ANALYSIS

The Louisiana Arbitration Law (LAL) is set forth in La. R.S. 9:4201 through 4217. La. R.S. 9:4201 provides:

A provision in any written contract to settle by arbitration a controversy thereafter arising out of the contract ... or an agreement in writing between two or more persons to submit to arbitration any controversy existing between them at the time of the agreement to submit, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.

La. R.S. 9:4202 provides for a stay of proceedings pending arbitration. The failure of a party to arbitrate in accordance *87 with the terms of an agreement may be raised either through a dilatory exception of prematurity or by a motion to stay proceedings pending arbitration. Johnson's, Inc. v. Gers, Inc., 34,268 (La.App.2d Cir.1/24/01), 778 So.2d 740, 743. When the issue of arbitration has been raised by an exception of prematurity, as here, the defendant pleading the exception has the burden of showing the existence of a valid contract to arbitrate. Id.

The Federal Arbitration Act (FAA) is found at 9 U.S.C. §§ 1-16. Section 2 provides:

A written provision in ...

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

Related

Authenment v. Ingram Barge Co.
878 F. Supp. 2d 672 (E.D. Louisiana, 2012)
Bossier Parish Police Jury v. Walton Construction Co.
56 So. 3d 271 (Louisiana Court of Appeal, 2010)
Arkel Constructors v. Duplantier & Meric
965 So. 2d 455 (Louisiana Court of Appeal, 2007)
LaFleur v. Law Offices of Anthony G. Buzbee
960 So. 2d 105 (Louisiana Court of Appeal, 2007)
Otis v. Sea
955 So. 2d 151 (Louisiana Court of Appeal, 2007)
Gunderson v. FA RICHARD & ASSOCIATES
937 So. 2d 916 (Louisiana Court of Appeal, 2006)
Snyder v. Belmont Homes, Inc.
899 So. 2d 57 (Louisiana Court of Appeal, 2005)
Tresch v. Kilgore
868 So. 2d 91 (Louisiana Court of Appeal, 2003)
Integrity Flooring v. Mid South Contractors
857 So. 2d 582 (Louisiana Court of Appeal, 2003)
Simpson v. Grimes
849 So. 2d 740 (Louisiana Court of Appeal, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
814 So. 2d 83, 2002 WL 472008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shroyer-v-foster-lactapp-2002.