Terminix Intern., Inc. v. Rice

904 So. 2d 1051, 2004 WL 2823074
CourtMississippi Supreme Court
DecidedDecember 9, 2004
Docket2003-IA-02502-SCT, 2003-CA-02548-SCT
StatusPublished
Cited by64 cases

This text of 904 So. 2d 1051 (Terminix Intern., Inc. v. Rice) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terminix Intern., Inc. v. Rice, 904 So. 2d 1051, 2004 WL 2823074 (Mich. 2004).

Opinion

904 So.2d 1051 (2004)

TERMINIX INTERNATIONAL, INC., Limited Partnership, Ray Stites and Anthony C. Fagan
v.
David RICE and Cynthia O. Rice.
Ray Stites, Anthony C. Fagan and Terminix International Company, Limited Partnership
v.
David Rice and Cynthia O. Rice.

Nos. 2003-IA-02502-SCT, 2003-CA-02548-SCT.

Supreme Court of Mississippi.

December 9, 2004.

*1053 Samuel Ernest Linton Anderson, Arthur F. Jernigan, Jr., Jackson, William W. Busching, attorneys for appellants.

Terry L. Caves, Laurel, Jerry Dean Sharp, attorneys for appellees.

Before SMITH, C.J., CARLSON and DICKINSON, JJ.

DICKINSON, Justice, for the Court.

¶ 1. We must decide in this case whether the plaintiffs must pursue their claim in arbitration.

BACKGROUND AND PROCEEDINGS

¶ 2. Dr. David Rice contracted with Terminix International, Inc. to provide protection from termites for the home he and his wife, Cynthia, built in Laurel. The contract, called "Termite Protection Plan," provided that Terminix would protect the Rices' home against infestations of termites for an annual fee. If termite damage occurred during the contract term, Terminix agreed to arrange and pay for necessary repairs, not to exceed $100,000. The contract also contained an arbitration clause.

¶ 3. When the Rices discovered extensive termite damage to their home, they attempted to reach a settlement with Terminix, but were unsuccessful. Rather than filing an arbitration proceeding as provided in the contract, the Rices filed suit in the Circuit Court of the Second Judicial District of Jones County, naming as defendants Terminix International Company, Limited Partnership, Ray Stites, and Anthony C. Fagan. The Complaint alleged gross negligence, intentional misrepresentation, grossly negligent misrepresentation, fraud, tortious breach of contract and fraudulent inducement.[1] Terminix included in its Answer a Motion to Compel Arbitration and a request that the trial court stay the proceedings pending arbitration. The Rices responded, contending that the arbitration clause was unconscionable and ambiguous and that Terminix's actions were not subject to the arbitration agreement.

¶ 4. The trial court denied the motion to compel arbitration, holding (1) that the Rices did not know they were submitting to arbitration when Dr. Rice signed the contract with Terminix; (2) the arbitration clause was both procedurally and substantively unconscionable; and (3) the contract was one of adhesion that denied the Rices their constitutional right to a jury trial or judicial remedy.

¶ 5. After unsuccessfully removing the matter to federal court, Terminix filed a motion for reconsideration by the circuit court. When the trial court denied the *1054 motion for reconsideration, Terminix filed its request for the trial court to certify the matter for interlocutory appeal. When its request for certification was denied, Terminix filed a Petition for Interlocutory Appeal with this Court, which we granted on the sole issue of the trial court's denial of the motion to compel arbitration.[2] We now proceed to review the matter, de novo. East Ford, Inc. v. Taylor, 826 So.2d 709, 713 (Miss.2002).

ANALYSIS

The Federal Arbitration Act

¶ 6. Terminix contends the trial court's refusal to enforce the arbitration agreement violates the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. ("FAA"), which applies to written agreements to arbitrate contained in contracts "evidencing a transaction involving commerce." Id. at § 2. The Rices do not contest the applicability of the FAA to the contract.

¶ 7. This Court has consistently recognized the existence of "a liberal federal policy favoring arbitration agreements," and has stated that "we will respect the right of an individual or an entity to agree in advance of a dispute to arbitration or other alternative dispute resolution." Russell v. Performance Toyota, Inc., 826 So.2d 719, 722 (Miss.2002) (quoting I.P. Timberlands Operating Co. v. Denmiss Corp., 726 So.2d 96, 104, 106, 107, 108 (Miss.1998)). See also McKenzie Check Advance of Miss., LLC v. Hardy, 866 So.2d 446, 450 (Miss.2004) (quoting Perry v. Thomas, 482 U.S. 483, 489, 107 S.Ct. 2520, 2525, 96 L.Ed.2d 426 (1987)). This Court has further stated:

Articles of agreement to arbitrate, and awards thereon are to be liberally construed so as to encourage the settlement of disputes and the presumption will be indulged in favor of the validity of arbitration proceedings.
* * *
"In enacting § 2 of the Arbitration Act, Congress declared a national policy favoring arbitration and withdrew the power of the states to require a judicial forum for the resolution of claims which the contracting parties agreed to resolve by arbitration. Congress has thus mandated the enforcement of arbitration agreements." The Arbitration Act, resting on Congress's authority under the Commerce Clause, creates a body of federal substantive law that is applicable in both state and federal courts. "The sine qua non of the FAA's applicability to a particular dispute is an agreement to arbitrate the dispute in a contract which evidences a transaction in interstate commerce." Doubts as to the availability of arbitration must be resolved in favor of arbitration. "[U]nless it can be said with positive assurance that an arbitration clause is not susceptible of an interpretation which would cover the dispute at issue, then a stay pending arbitration should be granted."
* * *
In addition to establishing a strong presumption in favor of arbitration, the Act also limits the role of the court to determining whether an issue is arbitrable. The court's sole function is to determine whether the claim is referable to arbitration. Once that determination is made, the court may not delve further into the dispute. "The courts ... have no business weighing the merits of a *1055 particular claim, or determining whether there is particular language in the written instrument which will support the claim."

Russell, 826 So.2d at 722 (quoting I.P. Timberlands, 726 So.2d at 104-08 (citations omitted)).

¶ 8. In determining motions to compel arbitration under the FAA, we must first determine whether the parties' dispute is within the scope of a valid arbitration agreement. If so, we then consider "whether legal constraints external to the parties' agreement foreclosed arbitration of those claims." Sullivan v. Mounger, 882 So.2d 129, 132 (Miss.2004) (quoting East Ford Inc. v. Taylor, 826 So.2d 709, 713 (Miss.2002)).

¶ 9. To determine whether the parties agreed to arbitration, we simply apply contract law. See First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 1924, 131 L.Ed.2d 985 (1995). The arbitration agreement between Terminix and Rice is valid on its face. There is no evidence suggested to us of procedural or substantive unconscionability or fraudulent inducement. Furthermore, it is without question that the Rices' claims are within the scope of the arbitration provision, as they are claims and controversies that directly challenge Terminix's performance of the contract.

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

Related

Banks v. Cavalier Homes, Inc.
N.D. Mississippi, 2024
LAGB, LLC. v. Total Merchant Services, Inc.
Mississippi Supreme Court, 2019
Olshan Foundation Repair Co. of Jackson, LLC v. Gloria Moore
251 So. 3d 725 (Mississippi Supreme Court, 2018)
Gross v. GGNSC Southaven, LLC
83 F. Supp. 3d 691 (N.D. Mississippi, 2015)
Pinnacle Trust Company, L.L.C. v. Lisa Brocato McTaggart
152 So. 3d 1123 (Mississippi Supreme Court, 2014)
Laumann v. National Hockey League
989 F. Supp. 2d 329 (S.D. New York, 2013)
Slater-Moore v. Goeldner
113 So. 3d 521 (Mississippi Supreme Court, 2013)
Virginia College, LLC v. Blackmon
109 So. 3d 1050 (Mississippi Supreme Court, 2013)
Southern Healthcare Services, Inc. v. Lloyd's of London
110 So. 3d 735 (Mississippi Supreme Court, 2013)
Harrison County Commercial Lot, LLC v. H. Gordon Myrick, Inc.
107 So. 3d 943 (Mississippi Supreme Court, 2013)
Virginia College, LLC v. Cordero Blackmon
Mississippi Supreme Court, 2012
Norma Slater Moore v. Christian T. Goeldner
Mississippi Supreme Court, 2012
American General Life & Accident Insurance v. Edwards
76 So. 3d 183 (Court of Appeals of Mississippi, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
904 So. 2d 1051, 2004 WL 2823074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terminix-intern-inc-v-rice-miss-2004.