Ward v. Check Into Cash of Alabama, LLC

981 So. 2d 434, 2007 Ala. Civ. App. LEXIS 600, 2007 WL 2684581
CourtCourt of Civil Appeals of Alabama
DecidedSeptember 14, 2007
Docket2060820
StatusPublished
Cited by8 cases

This text of 981 So. 2d 434 (Ward v. Check Into Cash of Alabama, LLC) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Check Into Cash of Alabama, LLC, 981 So. 2d 434, 2007 Ala. Civ. App. LEXIS 600, 2007 WL 2684581 (Ala. Ct. App. 2007).

Opinion

981 So.2d 434 (2007)

Teresa WARD
v.
CHECK INTO CASH OF ALABAMA, LLC.

2060820.

Court of Civil Appeals of Alabama.

September 14, 2007.

*435 Lawrence T. King and Lindsey O. Hill of King, Horsley & Lyons, LLC, Birmingham, for appellant.

Anthony N. Fox of Scott, Sullivan, Streetman & Fox, P.C., Birmingham, for appellee.

MOORE, Judge.

Teresa Ward ("the employee") appeals from the Chambers Circuit Court's May 17, 2007, order compelling her to submit her workers' compensation claim to arbitration. We reverse and remand.

Facts and Procedural History

On November 7, 2006, the employee filed a complaint in the Chambers Circuit Court claiming that Check Into Cash of Alabama, L.L.C. ("the employer"), owed her workers' compensation benefits as a result of an accidental injury that allegedly arose out of and in the course of her employment with the employer on July 29, 2005. On December 5, 2006, the employer filed an answer, admitting that the employee *436 had sustained a work-related injury as alleged in the complaint but denying that it had failed or refused to pay the benefits due the employee.

On January 12, 2007, the employer filed a motion to stay the litigation and to compel arbitration. In that motion, the employer asserted that on June 23, 2005, the employee had signed an "Employment, Confidentiality and Non-Compete Agreement" that contained an arbitration agreement providing, in pertinent part:

"Employee agrees that any employment-related dispute, controversy or claim that Employee may have with the Company . . . shall be resolved only through arbitration and not through litigation in federal, state or local court.
"Employee agrees that he/she cannot bring any claim or lawsuit in federal, state or local court involving . . . employment . . . with the Company including, but in no way limited to, . . . statutory . . . claims under . . . state . . . law."

(Emphasis in original.) The employer asserted that the arbitration agreement precluded the employee from pursuing her claim for workers' compensation benefits in any forum other than through binding arbitration.

On April 9, 2007, the employee filed a brief in opposition to the motion to compel arbitration. On May 17, 2007, the trial court heard oral arguments on the motion. On May 21, 2007, the court entered an order granting the motion to compel arbitration and appointing Robert C. Finley, the mayor of Lafayette, Alabama, as the arbitrator. On June 11, 2007, the employee filed a notice of appeal in the Chambers Circuit Court.

Standard of Review

We conduct a de novo review of a trial court's order compelling arbitration. Smith v. Mark Dodge, Inc., 934 So.2d 375, 378 (Ala.2006).

"The party seeking to compel arbitration must first prove both that a contract calling for arbitration exists and that the contract evidences a transaction involving interstate commerce. . . . Once this showing has been made, the burden then shifts to the nonmovant to show that the contract is either invalid or inapplicable to the circumstances presented."

Smith, 934 So.2d at 378.

Analysis

The employee concedes that the employer proved the existence of an arbitration agreement contained in a contract affecting interstate commerce. However, the employee maintains that the arbitration agreement does not cover her workers' compensation claim because, she contends, (1) Congress did not intend that state workers' compensation claims would be subject to arbitration when it passed the Federal Arbitration Act ("the FAA"), 9 U.S.C. § 1, et seq., (2) the arbitration agreement violates state public policy and, therefore, cannot be enforced, (3) the arbitration agreement violates Alabama law and, therefore, cannot be enforced, and (4) the arbitration agreement is ambiguous as to its scope and the ambiguity should be resolved against arbitration. We find the last issue to be dispositive of the case.

The employee argues that because the terms of the Alabama Workers' Compensation Act, § 25-5-1 et seq., Ala.Code 1975 ("the Act"), are implied in every employment contract in the state, any express agreement to arbitrate employment-related claims creates a "patent ambiguity" that should be resolved against the drafter and, hence, against arbitration. The employer asserts that this court has already rejected all of the employee's arguments, *437 presumably including the ambiguity argument, in Ryan's Family Steakhouse, Inc. v. Kilpatric, 966 So.2d 273 (Ala.Civ.App. 2006), cert. denied, Ex parte Kilpatric, 966 So.2d 292 (Ala.2007). However, in Kilpatric neither party raised the ambiguity argument made by the employee in this case. Hence, we consider that argument for the first time on this appeal.

The employee cites numerous cases for the proposition that the terms of the Act are to be read into every employment contract made in this state. See Ex parte Southern Energy Homes, Inc., 603 So.2d 1036, 1039 (Ala.1992); Reed v. Brunson, 527 So.2d 102, 108 (Ala.1988); Tennessee Coal & Iron Div., U.S. Steel Corp. v. Hubbert, 268 Ala. 674, 677, 110 So.2d 260, 263 (1959); Harris v. National Truck Serv., 56 Ala.App. 350, 321 So.2d 690 (Civ.1975); and Owens v. Ward, 49 Ala.App. 293, 271 So.2d 251 (Civ.1973). The employee is correct insofar as those cases relied on earlier versions of the Act. The Act formerly provided that it became effective "[i]f both employer and employee, by agreement, expressed or implied, . . . become subject to this article." Ala.Code 1940 (Recomp.1958), Tit. 26, § 270 (before 1973 amendment). The Act further provided that "[a]ll contracts of employment . . . shall be presumed to have been made with reference to and subject to the provisions of this article." Ala.Code 1975, § 25-5-54 (before 1992 amendment); see also Ala. Acts 1919, Act No. 245. Accordingly, the appellate courts of this state held that the Workmen's Compensation Act was completely elective in nature. See Ellison v. Butler, 271 Ala. 399, 124 So.2d 88 (1960); and Steele v. Aetna Cas. & Sur. Co., 46 Ala.App. 705, 248 So.2d 745 (Civ. 1971). Not surprisingly, therefore, in Chapman v. Railway Fuel Co., 212 Ala. 106, 109, 101 So. 879, 881 (1924), our supreme court held that the terms of the workmen's compensation laws "become part and parcel of the express or implied agreement between the parties. . . .," as the employee asserts.

Section 25-5-51 of the current Act now provides that the compensation article becomes effective "[i]f an employer is subject to this article." Section 25-5-54 now provides that "[e]very employer and employee, except as otherwise specifically provided in this article, shall be presumed to have accepted and come under this article." Because of those changes, the Act no longer expressly provides that the parties must agree to become subject to the terms of the Act, and the Act no longer expressly states that the terms of the workers' compensation laws are to be read into every employment contract made in the state.

Nevertheless, the current Workers' Compensation Act still retains the basic elective nature of the original Workmen's Compensation Act. Instead of requiring the parties to agree to coverage, however, the Act generally presumes that every employer and employee, except those specifically excluded from coverage, has accepted the provisions of the Act.

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Bluebook (online)
981 So. 2d 434, 2007 Ala. Civ. App. LEXIS 600, 2007 WL 2684581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-check-into-cash-of-alabama-llc-alacivapp-2007.