SUTTON'S STEEL & SUP. INC. v. BellSouth Mobility, Inc.

776 So. 2d 589, 0 La.App. 3 Cir. 511, 2000 La. App. LEXIS 3345
CourtLouisiana Court of Appeal
DecidedDecember 13, 2000
Docket00 511-CW, 00 898-CA
StatusPublished
Cited by32 cases

This text of 776 So. 2d 589 (SUTTON'S STEEL & SUP. INC. v. BellSouth Mobility, Inc.) 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
SUTTON'S STEEL & SUP. INC. v. BellSouth Mobility, Inc., 776 So. 2d 589, 0 La.App. 3 Cir. 511, 2000 La. App. LEXIS 3345 (La. Ct. App. 2000).

Opinion

776 So.2d 589 (2000)

SUTTON'S STEEL & SUPPLY, INC., et al.
v.
BELLSOUTH MOBILITY, INC.

Nos. 00 511-CW, 00 898-CA.

Court of Appeal of Louisiana, Third Circuit.

December 13, 2000.
Writ Denied March 16, 2001.

*590 Edward Hart Bergin, Genevieve Hartel Salassi, T. Michael Twomey, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P., New Orleans, LA, Coleman Douglas Ridley, Gary Jude Russo, Perret, Doise, Aplc, Lafayette, LA, Counsel for Defendant/Appellant BellSouth Mobility, Inc.

Jonathan Beauregard Andry, Andry & Andry, Lionel H. Sutton, III, Attorney at Law, New Orleans, LA, Counsel for Plaintiffs/Appellees Sutton's Steel & Supply, Inc., Kate Davis.

(Court composed of THIBODEAUX, DECUIR, and PETERS, Judges).

*591 PETERS, Judge.

This case is before us in the posture of a consolidated writ application and an appeal for review of a trial court ruling denying a motion to compel arbitration and to stay the proceedings. We affirm the judgment of the trial court.

This litigation began with the filing of a class action petition on June 24, 1999, by Sutton's Steel & Supply, Inc. (Sutton's Steel) and Kate Davis seeking an award of damages against BellSouth Mobility, Inc. (BellSouth) in connection with cellular telephone services obtained from BellSouth. Specifically, the plaintiffs alleged that BellSouth improperly charged them, and the members of the class represented by them, for time in whole-minute increments rounded up to the next minute and improperly charged them for other noncommunication time. They asserted that this action by BellSouth breached the contract for cellular services between the individual members of the class and BellSouth. Additionally, the plaintiffs asserted that BellSouth engaged in a pattern and practice of misrepresenting its fee schedule through advertisements and that this pattern and practice constituted negligent misrepresentation.

On August 11, 1999, BellSouth responded to the petition by filing declinatory, dilatory, and peremptory exceptions. The trial court has yet to rule upon these exceptions. On September 23, 1999, the plaintiffs filed a motion to certify the action as a class action. Before the trial court could hold a hearing on that motion, the litigants mutually agreed to continue any certification effort pending further discovery. However, on December 2, 1999, BellSouth filed a motion to compel the litigants to arbitrate the dispute and to stay the proceedings pending the arbitration process. After a hearing held on February 23, 2000, the trial court took the arbitration issue under advisement. It then rendered written reasons for judgment on March 24, 2000, denying the motion. BellSouth applied for supervisory writs to this court on April 12, 2000, and, on April 20, 2000, obtained an order granting it a suspensive appeal of the same judgment. On June 1, 2000, we consolidated BellSouth's writ application with the then unlodged appeal.

In considering the merits of the issues before us, we first note that neither side introduced any evidence at the February 23 hearing but simply presented oral argument which referred to certain documents attached to the pleadings and briefs filed in the trial record. BellSouth had attached two exhibits to its motion to compel arbitration and stay the proceedings, namely, copies of the contracts between BellSouth and the plaintiffs dated October 9, 1998. BellSouth's memorandum in support of its motion contained no additional attachments and referred only to the two exhibits attached to its motion. Attached to the plaintiffs' memorandum in opposition to BellSouth's motion were copies of the same contracts as well as copies of contracts between BellSouth and Sutton's Steels dated April 15, 1996, and June 16, 1994, and excerpts from the deposition of Lionel Sutton, the designated representative of Sutton's Steels, taken November 12, 1999.

The plaintiffs' brief in opposition to BellSouth's application for supervisory writs contained no attachments. However, after the plaintiffs filed their opposition brief, BellSouth filed a reply brief in support of its application, which contained as additional attachments a copy of Wireless Industry Arbitration Rules, effective July 15, 1997, and a copy of the administrative fee schedule of the American Arbitration Association, Wireless Industry Arbitration Rules. The plaintiffs then filed a supplemental brief in opposition to the supervisory writ application, which contained two additional attachments, namely, a policy statement from the Federal Communications Commission adopted February 29, 2000, and released March 1, 2000, and a copy of an order dated and filed May 11, 1999, in the matter of Bradley *592 S. Joiner and Catherine McKay v. Ameritech Mobile Communications, Inc., No. 96-L-121 of the Third Judicial Circuit, Madison County, Illinois.

While counsel for both litigants offered none of these exhibits as evidence at the February 23 hearing, both counsel freely acknowledged the existence of arbitration language found in the October 9, 1998 contracts between BellSouth and the plaintiffs. Counsel for the plaintiffs argued that the arbitration language was "adhesionary and unconscionable," primarily because of BellSouth's superior bargaining position. The plaintiffs also argued that the prior contracts with BellSouth contained no similar language and that they were not told of the change in the contract when they executed it. BellSouth argued that the language was added "to reduce the cost of dispute resolution" and "because it promotes an effective, efficient resolution of disputes." Further, BellSouth suggested that the procedure was "bilateral" and that only two issues were before the trial court: "[I]s it a valid clause, and does the nature of the dispute... fall within the scope of the clause?"

Thus, at the conclusion of the hearing, the trial court had no evidence offered for its consideration of the issue before it. However, in its written reasons for judgment, the trial court stated as fact much of the assertions of fact found in the memoranda filed by the litigants. In doing so, the trial court concluded that the arbitration clause was unconscionable and, therefore, unenforceable. We find error in the trial court's reliance on assertions in the memoranda as facts in evidence, but that error does not require us to conclude that the trial court's refusal to enforce the arbitration clause was in error.

Appellate courts are courts of record, and we must render judgment based on the record on appeal. La.Code Civ.P. art. 2164; Willis v. Letulle, 597 So.2d 456 (La.App. 1 Cir.1992). We may not review evidence that is not in the record, and we may not receive new evidence. Willis, 597 So.2d 456. Moreover, we may not even consider exhibits filed in the record if those exhibits were not also filed into evidence, unless we are otherwise authorized by law to do so (as in summary judgment procedure). Id. (quoting State ex rel. Guste v. Thompson, 532 So.2d 524, 527 n. 2 (La.App. 1 Cir.1988)).

Because the litigants presented no evidence for the trial court to consider, we must first determine what remains in the record for us to consider on appeal. In doing so, we conclude that only the October 9, 1998 contracts between BellSouth and the plaintiffs were properly before the trial court. We reach this conclusion by interpreting the plaintiffs' argument at the February 23 hearing to constitute a judicial confession that these contracts contained the arbitration language at issue. Louisiana Civil Code art.

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Bluebook (online)
776 So. 2d 589, 0 La.App. 3 Cir. 511, 2000 La. App. LEXIS 3345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suttons-steel-sup-inc-v-bellsouth-mobility-inc-lactapp-2000.