WILLCO ENTERPRISES, LLC v. Woodruff

2010 OK CIV APP 18, 231 P.3d 767, 2010 Okla. Civ. App. LEXIS 4, 2010 WL 718557
CourtCourt of Civil Appeals of Oklahoma
DecidedJanuary 22, 2010
Docket106,237. Released for Publication by Order of the Court of Civil Appeals of Oklahoma, Division No. 3
StatusPublished
Cited by11 cases

This text of 2010 OK CIV APP 18 (WILLCO ENTERPRISES, LLC v. Woodruff) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WILLCO ENTERPRISES, LLC v. Woodruff, 2010 OK CIV APP 18, 231 P.3d 767, 2010 Okla. Civ. App. LEXIS 4, 2010 WL 718557 (Okla. Ct. App. 2010).

Opinion

BAY MITCHELL, Chief Judge.

1 1 In a dispute arising out of a residential construction contract, Plaintiff/Counter-Defendant/Appellant Willeo Enterprises, L.L.C. (Willeo) and Third-Party Defendant/ Appellant Donny Williamson (Williamson), appeal the trial court's order denying their motion to compel arbitration. 'Willeo and Williamson (Appellants) argue the Uniform Arbitration Act, 12 O.S. Supp.2006 §§ 1851-1881 (the New Act), supplants the six-factor test set forth in Northland Ins. Co. v. Kellogg, 1995 OK CIV APP 84, 897 P.2d 1161, for determining whether a party has waived its right to compel arbitration under 15 0.8.1991 §§ 801-818 (the Old Act). Appellants thus insist it was error for the trial court to apply the Northland analysis in ruling on their motion to compel. In the alternative, Appellants argue if Northland does survive under the New Act, Defendant/Counter-Claimant/Third-Party Plaintiff/Appellee Conchita L. Woodruff (Woodruff) failed to meet her burden of proof. Even assuming, as did the trial court, five of the six Northland factors survive under the New Act, we find Wood-ruffs evidence insufficient to show Appellants waived their right to compel arbitration in this case. We REVERSE the decision of the trial court.

Facts and Procedural History

2 Williamson is the owner and managing member of Willeo, a homebuilding company based in Tulsa, Oklahoma. In 2006, Wood-ruff purchased from Willeo certain real property in Tulsa and retained Willeo to construct a residence on the site. Toward that end, the parties entered a Real Estate Purchase Agreement (Agreement) May 12, 2006. The Agreement includes both a clause mandating arbitration of all disputes between the parties, which the parties were required to initial at execution, and an anti-waiver provision. 1 The arbitration clause expressly pro *770 vides nothing contained therein "shall be deemed to limit or restrict Builder's right to file a materialmen's or mechanics' lien against the Real Property or prosecute foreclosure proceedings based thereupon," and the waiver provision declares "[fJailure by any Party to enforce or exercise rights under this Agreement ... shall not affect the right of any Party to exercise or enforce any such rights or require such performance at any time thereafter."

T3 In building Woodruffs home, Appellants claim they furnished material, labor, and equipment through January 2008, by which point Woodruff, who had taken up residence in the home, allegedly ceased making required payments under the Agreement. In response, Willeo filed a verified lien statement with the Tulsa County Clerk January 22, 2008, in which it declared Woodruff had an outstanding debt of $90,617.38 plus interest for labor, material, and equipment. Will-co amended its materialmen's and mechanies' lien February 26, 2006, to increase the amount of Woodruff's alleged indebtedness to $106,708.25 plus interest. Prosecuting foreclogure actions being expressly permitted by the Agreement, Willeo initiated the present lawsuit March 5, 2008 by filing with the trial court a petition asserting breach of contract and seeking to foreclose the amended lien or, in the alternative, to recover in guon-a meruit. 2

T4 Woodruff filed an answer March 27, 2008, in which she asserted fourteen counterclaims against Willeo and advanced two third-party claims against Williamson in his individual capacity, thus bringing him into the lawsuit as a third-party defendant. On the same day as her answer, prior to conducting any discovery in the case, Woodruff separately filed both a motion for summary judgment and an offer to allow judgment.

15 Willeo replied to Woodruff's counterclaims and Williamson answered her third-party petition April 7, 2008. In neither of these responsive pleadings did Appellants assert their contractual right to arbitrate the counter- and third-party claims as an affirmative defense.

T6 On April 11, 2008, the president of 1st Bank of Oklahoma moved to quash Wood-ruff's subpoena duces teeum. Three days later, Appellants together filed a Rule 13(D) motion regarding Woodruff's motion for summary judgment, 3 and followed that with a *771 combined motion to quash Woodruff's subpoena and/or for protective order.

T7 On April 24, 2008, Woodruff filed separate responses in opposition to both motions to quash. The following week, she objected to Appellants' Rule 13(D) motion. On May 6, 2008, Woodruff subpoenaed for deposition both Williamson and an individual named Chris Burdan.

T8 On or about May 183, 2008, Appellants served Woodruff with one set of discovery requests to which Woodruff never responded; she filed a motion for protective order instead. Appellants filed an unopposed motion for leave to dismiss and substitute parties May 30, 2008. 4 Appellants' counsel filed a motion to withdraw June 9, 2008, which the trial court granted two days later. Appellants' current counsel filed their entries of appearance the same day.

9 According to the parties' briefs on appeal and the trial court's docket sheet, the aforementioned motions, requests, and pleadings comprise all of the activity that took place during the three-and-a-half months after Willeo's March 5, 2008 petition but prior to Appellants' June 20, 2008 motion to compel arbitration. 5

T 10 The trial court denied Appellants' request to compel arbitration of Woodruffs counterclaims and third-party claims, declaring in its August 20, 2008, order:

1. The Court FINDS Woodruff is bound by the contractual provision to arbitrate this dispute. However, the Court FINDS Willeo has waived its right to arbitrate pursuant to the analysis articulated in Northland Ins. Co. v. Kellogg, 1995 OK CIV APP 84 [897 P.2d 1161], which the Court finds has not been displaced by Oklahoma's Uniform Arbitration Act of 2005, 12 0.8.
Supp.2005 §§ 1851 et seq. (the "Arbitration Act").
2. The Court FURTHER FINDS, in applying the 6-factor test of Northland herein (subparts (a)-(f) herein), that: (a, b) Willeo filed this action without providing notice of arbitration or seeking a stay of the proceedings and affirmatively sought relief from the Court including conducting discovery, inconsistent with the right to arbitrate, (c) Willeo's delay in seeking to compel arbitration was not a long delay, but the delay was indicative of actions inconsistent with the right to arbitrate, (d) there has been substantial work performed in the action before the District Court, (e) the fifth factor of the North-land test (engagement in discovery proceedings unavailable in arbitration) is inapplicable herein, and (f) no showing has been made that there has been a substantial prejudice visited upon Woodruff if arbitration were compelled-whatever prejudice there might be to Woodruff is slight since work that has been performed would be performed in arbitration.

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

Related

HOWELL'S WELL SERVICE v. FOCUS GROUP ADVISORS
2021 OK 25 (Supreme Court of Oklahoma, 2021)
American Federation of State v. City of Albuquerque
2013 NMCA 049 (New Mexico Court of Appeals, 2013)
Green Tree Servicing, LLC v. Hill
2013 OK CIV APP 62 (Court of Civil Appeals of Oklahoma, 2013)
AFSCME v. City of Albuquerque
2013 NMCA 49 (New Mexico Court of Appeals, 2012)
B.A.P., L.L.P. v. Pearman
2011 OK CIV APP 30 (Court of Civil Appeals of Oklahoma, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
2010 OK CIV APP 18, 231 P.3d 767, 2010 Okla. Civ. App. LEXIS 4, 2010 WL 718557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willco-enterprises-llc-v-woodruff-oklacivapp-2010.