Timothy Hillhouse and Rebecca Hillhouse v. Chris Cook Construction, LLC and Cress Realty Group, Inc.

CourtMississippi Supreme Court
DecidedSeptember 30, 2021
Docket2020-CA-00438-SCT
StatusPublished

This text of Timothy Hillhouse and Rebecca Hillhouse v. Chris Cook Construction, LLC and Cress Realty Group, Inc. (Timothy Hillhouse and Rebecca Hillhouse v. Chris Cook Construction, LLC and Cress Realty Group, Inc.) 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
Timothy Hillhouse and Rebecca Hillhouse v. Chris Cook Construction, LLC and Cress Realty Group, Inc., (Mich. 2021).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2020-CA-00438-SCT

TIMOTHY HILLHOUSE AND REBECCA HILLHOUSE

v.

CHRIS COOK CONSTRUCTION, LLC, AND CRESS REALTY GROUP, INC.

DATE OF JUDGMENT: 03/30/2020 TRIAL JUDGE: HON. STEVE S. RATCLIFF, III TRIAL COURT ATTORNEYS: BRIAN AUSTIN HINTON ROBERT DAVIS HOUSE THOMAS McILWAIN WRIGHT, JR. CLYDE X. COPELAND FRANK RUSSELL BRABEC MATTHEW WILLIAM VANDERLOO ANDREW ROBERTS NORWOOD JOHN B. MACNEILL RONALD EARL STUTZMAN, JR. MICHAEL STEPHEN MACINNIS PATRICK M. TATUM WILLIAM LOCK MORTON, III MICHAEL WINSTON RUTLEDGE COURT FROM WHICH APPEALED: MADISON COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANTS: BRIAN AUSTIN HINTON THOMAS McILWAIN WRIGHT, JR. ROBERT DAVIS HOUSE ATTORNEYS FOR APPELLEES: CLYDE X. COPELAND FRANK RUSSELL BRABEC JAMES MATTHEW TYRONE MATTHEW WILLIAM VANDERLOO NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: REVERSED AND REMANDED - 09/30/2021 MOTION FOR REHEARING FILED: MANDATE ISSUED: EN BANC.

KING, PRESIDING JUSTICE, FOR THE COURT:

¶1. Timothy and Rebecca Hillhouse entered into a contract with Chris Cook Construction

for the construction of their home. The contract contained an arbitration provision mandating

that arbitration be conducted before a forum that was unavailable at the time the contract was

executed. The trial court entered an order compelling arbitration and appointing an

arbitrator. Because the forum was a contract requirement, the arbitration provision is

unenforceable, and appointing an arbitrator requires courts to reform the contractual

agreement between the parties. This Court therefore reverses the trial court’s order

compelling arbitration and remands the case for further proceedings.

FACTS AND PROCEDURAL HISTORY

¶2. On November 28, 2018, the Hillhouses filed a complaint against a number of

defendants, including Chris Cook Construction (CCC), asserting negligence, breach of

warranty, and breach of contract regarding the design and construction of their home and

drainage system. They alleged that their lot and home had flooded, causing property damage.

On January 10, 2019, CCC filed its motion to compel arbitration and its answer and defenses.

¶3. The Hillhouses and CCC executed a contract on September 10, 2013, for the

construction of the Hillhouses’ home. That contract contained an arbitration provision.1 The

1 The parties agree that the contract is a construction contract of the type to which Mississippi Code Section 11-15-101 to -142 (Rev. 2019), the Mississippi construction arbitration statutes, generally apply.

2 arbitration provision provided that “[a]ll claims, disputes and other matters in question,

arising out of or related to this Contract or the breach thereof shall be submitted to arbitration

before the Southern Arbitration and Mediation Association upon demand by either party to

the dispute.” CCC admits that the Southern Arbitration and Mediation Association (SAMA)

ceased to exist in 1996.

¶4. After a January 22, 2020 hearing, the trial court granted CCC’s motion to compel

arbitration. It found that a valid agreement to arbitrate existed and appointed an arbitrator

pursuant to Mississippi Code Section 11-15-109 (Rev. 2019). The Hillhouses filed a

Mississippi Rule of Civil Procedure 59 motion to alter or amend the judgment, arguing that

arbitration should have been denied. The trial court denied their motion. The Hillhouses

appeal, arguing that 1) the contract does not contain a valid and enforceable arbitration

agreement; 2) this case is controlled by Covenant Health & Rehabilitation v. Estate of

Moulds ex rel. Braddock, 14 So. 3d 695 (Miss. 2009), and the trial court therefore erred by

denying their Rule 59 motion; and 3) CCC waived any right to arbitration.

ANALYSIS

1. Standard of Review

¶5. This Court applies a de novo standard of review to a trial court’s decision to grant or

deny a motion to compel arbitration. Moulds, 14 So. 3d at 701. This case also presents an

issue of first impression in statutory interpretation. “‘The interpretation of a statute is a

question of law, and the standard of review on appeal is de novo.’” Dancy v. State, 287 So.

3 3d 931, 935–36 (Miss. 2020) (quoting Rex Distrib. Co., Inc. v. Anheuser-Busch, LLC, 271

So. 3d 445, 449 (Miss. 2019)).

2. Mississippi Construction Arbitration Statutes

¶6. Mississippi Code Sections 11-15-101 through -143 apply specifically to arbitration

agreements found in certain construction contracts. The parties to an applicable construction

contract “may include in a written contract a provision for the settlement by arbitration of any

controversy thereafter arising between them relating to such contract . . . . Such agreement

or provision shall be valid, enforceable and irrevocable without regard to the justiciable

character of the controversy.” Miss. Code Ann. § 11-15-103 (Rev. 2019).2 A party to such

an agreement may apply to the court

for an order directing the parties to proceed with arbitration in accordance with the terms of such agreement or provision. If the court finds that no substantial issues exists as to the making of the agreement or provision, it shall grant the application. If the court shall find that a substantial issue is raised as to the making of the agreement or provision, it shall summarily hear and determine such issue and shall, consistent with such determination, grant or deny the application.

Miss. Code Ann. § 11-15-105(1) (Rev. 2019).3

2 This is similar to the Federal Arbitration Act (FAA), which provides that written arbitration agreements “shall be 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.A. § 2 (West). 3 This is similar to the FAA provision that provides that parties to such contract may petition a court for an “order directing that such arbitration proceed in the manner provided for in such agreement.” 9 U.S.C.A. § 4 (West). Further,

[t]he court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue,

4 ¶7. The construction statutes further provide that

If an agreement or provision for arbitration provides a method for the appointment of arbitrators this method shall be followed. In the absence thereof, or if the agreed method fails or for any reason cannot be followed, or if an arbitrator who has been appointed fails or is unable to act and his successor has not been duly appointed, the court, on application of a party to such agreement or provision, shall appoint one or more arbitrators.

Miss. Code Ann. § 11-15-109 (Rev. 2019).4 Like the FAA, the Mississippi statutes provide

for arbitration procedures that are to be followed, unless otherwise provided by the parties’

agreement. See Miss. Code Ann. §§ 11-15-111 to -143 (Rev. 2019). Interpreting Section 11-

15-109 is an issue of first impression.

3. Arbitration Caselaw

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Timothy Hillhouse and Rebecca Hillhouse v. Chris Cook Construction, LLC and Cress Realty Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/timothy-hillhouse-and-rebecca-hillhouse-v-chris-cook-construction-llc-and-miss-2021.