Wedemeyer v. Gulfstream Aerospace Corp.

749 S.E.2d 241, 324 Ga. App. 47, 36 I.E.R. Cas. (BNA) 1318, 2013 Fulton County D. Rep. 2982, 2013 WL 5391185, 2013 Ga. App. LEXIS 793
CourtCourt of Appeals of Georgia
DecidedSeptember 27, 2013
DocketA13A0836
StatusPublished
Cited by8 cases

This text of 749 S.E.2d 241 (Wedemeyer v. Gulfstream Aerospace Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Wedemeyer v. Gulfstream Aerospace Corp., 749 S.E.2d 241, 324 Ga. App. 47, 36 I.E.R. Cas. (BNA) 1318, 2013 Fulton County D. Rep. 2982, 2013 WL 5391185, 2013 Ga. App. LEXIS 793 (Ga. Ct. App. 2013).

Opinion

Miller, Judge.

John Scott Wedemeyer sued Gulfstream Aerospace Corporation, his former employer, for defamation and tortious interference with a business expectancy. Gulfstream moved to dismiss, arguing, inter alia, that Wedemeyer was compelled to arbitrate his claims based on the parties’ arbitration agreement that covered all employment-related claims, including claims for intentional torts and defamation. After conducting two hearings on the matter and carefully reviewing the record, the trial court granted Gulfstream’s motion to compel arbitration and dismissed the case with prejudice. Wedemeyer appeals, contending that the trial court erred in compelling arbitration. For the reasons that follow, we affirm.

“Georgia courts are required to uphold valid arbitration provisions in contracts[.]” (Citation and punctuation omitted.) Bishop Contracting Co. v. Center Bros., 213 Ga. App. 804, 805 (1) (445 SE2d 780) (1994). “The standard of review from the denial of a motion to compel arbitration is whether the trial court was correct as a matter of law.” (Footnote omitted.) D. S. Ameri Constr. Corp. v. Simpson, 271 Ga. App. 825, 826 (611 SE2d 103) (2005). “Unless the parties clearly and unmistakably provide otherwise,” the arbitrability is undeniably [48]*48an issue for judicial determination. (Citations omitted.) AT&T Technologies v. Communications Workers of America, 475 U. S. 643, 649 (II) (106 SCt 1415, 89 LE2d 648) (1986).

The record shows that Gulfstream manufactures and services Gulfstream aircraft and is headquartered in Chatham County, Georgia. In 2007, Gulfstream hired Wedemeyer as a production test pilot. Upon his employment, Wedemeyer agreed to abide by Gulfstream’s Dispute Resolution Policy (hereinafter the “Arbitration Agreement”), which set forth a four-level process culminating in binding arbitration of all employment-related claims, including claims for intentional torts and defamation.

The Arbitration Agreement pertinently provides:

PURPOSE [:] This policy (“DRP” or the “Policy”) applies... to all employees who were employed by the Company while the Policy or any version was in effect (collectively referred as the “Employee” or “Employees”). . . .
DRP is a structured dispute resolution process that applies to Covered Claims and consists of four levels: Level 1: Human Resources Review;... Level 2\ Management Panel Review; . . . Level 3: Mediation[;] . . . Level 4: Arbitration[.] Employees must complete each level of the process before proceeding to the next level. The Company may elect to bypass one or more steps prior to arbitration for disputes with applicants for employment, with former employees, or if the Company is the initiating party.
Covered Claims are employment-related claims between an individual Employee and the Companyf.] . . . Covered Claims involve a claim of a legal right, obligation or entitlement regarding or arising from the employment relationship. Covered Claims include, but are not limited to, the following: (1) Claims relating to involuntary terminations [;] ... (5) Tort claims, intentional torts, negligence, defamation, invasion of privacy, infliction or emotional distress [.] . . .
Claims excluded from the DRP are the following:... 5. Claims against the Company . . . which do not have any relationship to the Employee’s work or relationship to the Companyf.] . . .
[49]*49Exclusivity of the Dispute Resolution Policy[:] The DRP is the sole and exclusive forum and remedy for all Covered Claims. The Employee and Company agree and hereby waive any right to jury trial for any Covered Claim.
Agreement to Arbitrate in Interstate Commerce[:] This Policy is an agreement to arbitrate pursuant to the Federal Arbitration Act [FAA], 9 U.S.C.A. Sections 1-14[.] . . .

(Emphasis supplied.)

On February 14, 2011, Wedemeyer was piloting a crew airplane during a production test flight in Appleton, Wisconsin. Upon landing, the plane experienced several system failures. Wedemeyer and his co-pilot’s response to those issues caused the plane to depart the runway, resulting in damage to the plane. Gulfstream immediately grounded Wedemeyer and subsequently terminated his employment.

Wedemeyer sued Gulfstream, alleging that Gulfstream’s dissemination of false conclusions that he was at fault for the incident had cost him numerous pilot positions. Wedemeyer further alleged that Gulfstream’s actions after his employment tortiously interfered with a legitimate business expectancy and that he had lost income from Gulfstream’s improper acts. Wedemeyer also alleged that Gulf-stream defamed him during a pilots’ meeting that was held during the evening on the day Wedemeyer was fired. Thereafter, a number of Gulfstream pilots allegedly warned various third parties and Gulf-stream counseled its employees to not have anything to do with Wedemeyer because he was suing Gulfstream.

Gulfstream moved to dismiss this action and compel arbitration. The trial court granted the motion and dismissed Wedemeyer’s suit.

1. In his sole enumeration of error, Wedemeyer contends that the trial court erred by compelling arbitration because he was not subject to the Arbitration Agreement when his claims against Gulfstream arose and his claims are not covered claims under the Agreement. We disagree.

“Arbitration ... is a matter of consent, not coercion,” Volt Information Sciences v. Bd. of Trustees of Leland Stanford Junior University, 489 U. S. 468, 479 (109 SCt 1248, 103 LE2d 488) (1989), and a party can be compelled to arbitrate only upon a showing that he entered into an enforceable agreement to arbitrate. Life Care Centers of America v. Smith, 298 Ga. App. 739, 741 (1) (681 SE2d 182) (2009). Here, we think there is sufficient evidence of the existence of an enforceable agreement between Wedemeyer and Gulfstream to arbitrate.

[50]*50“Arbitration in Georgia is a matter of contract. As such, the construction of an arbitration clause in a contract is subject to the ordinary rules of contract construction.” (Citations and punctuation omitted.) SCSJ Enterprises v. Hansen & Hansen Enterprises, 319 Ga. App. 210, 212 (1) (734 SE2d 214) (2012).

First, we must determine if the contract language is ambiguous, and, if so, then we apply the appropriate rules of construction set forth in OCGA § 13-2-2. Where the language of a contract is plain and unambiguous, however, no construction is required or permissible and the terms of the contract must be given an interpretation of ordinary significance.

(Citation and punctuation omitted.) Richard Bowers & Co. v. Creel, 280 Ga. App. 199, 200-201 (1) (633 SE2d 555) (2006); see also Canton Plaza v. Regions Bank, 315 Ga. App. 303, 308-309 (3) (732 SE2d 449) (2012) (the contract alone is looked to where the language is clear and unambiguous).

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749 S.E.2d 241, 324 Ga. App. 47, 36 I.E.R. Cas. (BNA) 1318, 2013 Fulton County D. Rep. 2982, 2013 WL 5391185, 2013 Ga. App. LEXIS 793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wedemeyer-v-gulfstream-aerospace-corp-gactapp-2013.