Wick v. Atlantic Marine, Inc.

Citation605 F.2d 166
Decision Date24 October 1979
Docket NumberNo. 79-1873,79-1873
PartiesMelvin J. WICK and Shari L. Wick, Plaintiffs-Appellees, v. ATLANTIC MARINE, INC., a corporation, Defendant-Appellant. Summary Calendar. *
CourtU.S. Court of Appeals — Fifth Circuit

Neil C. Taylor, Robert E. Warren, Jacksonville, Fla., for defendant-appellant.

John B. Culp, Jr., Jacksonville, Fla., for plaintiffs-appellees.

Appeal from the United States District Court for the Middle District of Florida.

Before BROWN, Chief Judge, and KRAVITCH and FRANK M. JOHNSON, Jr., Circuit Judges.

KRAVITCH, Circuit Judge:

Atlantic Marine, defendant below, appeals from the order of the district court denying its motion for a stay of proceedings pending arbitration. The dispute arises from the construction and purchase of a combination crab boat/shrimp trawler.

On May 29, 1978, the builder-seller, Atlantic Marine, notified the buyers (appellees) that their boat was complete and ready for delivery. On June 2, 1978, the buyers gave the builder written notice of disputes and complaints of nonconformity between the boat and the specifications for the boat, complaints which had previously been brought to the seller's attention. The same day the seller notified the buyers that the disputes should be settled as provided for in Articles VI and VII of the contract, appointed its marine surveyor and asked the buyers to do the same at the earliest possible date so that the disputes could be settled. The buyers refused to do so and on June 16, 1978 filed a complaint which alleged and sought damages for breach of contract (Counts II & III), fraud and deceit (Count IV), negligent design and construction (Count V) and breach of warranty (Count VI). Count I is a claim for replevin; the seller delivered the boat to the buyers on stipulation and without prejudice on June 27, 1978.

Article VI of the contract provides in part:

Should BUYER . . . find that the work is not being performed in accordance with the plans and specifications, BUYER . . . shall immediately notify AMI in writing, setting forth the nature and character of the complaint in sufficient detail so as to fully apprise AMI of same. If the parties cannot settle the dispute between themselves, then, On written demand of either party, each Shall select a competent marine surveyor and notify the other of the surveyor so selected within five (5) days of such demand. 1 The surveyors shall first select a competent and disinterested umpire and failing for five (5) days to agree upon such umpire, then on request of AMI or BUYER, such umpire shall be selected by the then presiding Chief Circuit Judge of the Fourth Judicial Circuit, in and for Duval County, Florida. The marine surveyors and the umpire shall then settle the dispute and shall have the discretion to impose the costs upon the losing party or divide it between the parties on any terms which may appear just. Unless any complaint is so reduced in writing, it shall be conclusively presumed that the vessel(s) is being constructed in a manner satisfactory to BUYER, and BUYER shall be precluded thereafter from raising any objections thereto. (emphasis added)

Article VII provides in part:

Upon completion of each vessel, the vessel shall be delivered to BUYER as set forth hereinabove. AMI shall give BUYER written notice of the completion of said vessel and BUYER shall, within five (5) days after receipt of such notice, accept delivery of said vessel. . . . In the event that there is any dispute as to the condition of the vessel at the time of delivery, such dispute shall be settled in the manner provided for in Article VI of this Contract; provided, however, BUYER shall have given AMI adequate written notice of such dispute or complaint prior to the expiration of the five (5) day period which BUYER has to accept delivery of said vessel after receiving notice of completion as set forth in this paragraph. After the expiration of said five (5) day period, BUYER shall be precluded from questioning the condition of said vessel, having by his or its action, conclusively and constructively accepted delivery of same.

The district court denied the defendant's motion for a stay pending arbitration on the ground that the arbitration clause in the contract does not contemplate all disputes arising from the contract, and mentioned specifically the buyers' allegation of fraudulent inducement as to certain contractual provisions. 2 While the district court may be correct that not all claims arising from the contract are arbitrable, it is settled in this circuit that if some claims are arbitrable and others are not and they are easily severable, that the court should stay proceedings as to those claims which are arbitrable. Sibley v. Tandy Corp., 543 F.2d 540 (5th Cir. 1976), Cert. denied, 434 U.S. 824, 98 S.Ct. 71, 54 L.Ed.2d 82 (1977); Sam Reisfeld & Sons Import Co. v. S.A. Eteco, 530 F.2d 679 (5th Cir. 1976). Furthermore, unless 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. United Steelworkers of America v. American Manufacturing Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960); Seaboard Coast Line R.R. Co. v. National Rail Passenger Corp., 554 F.2d 657 (5th Cir. 1977) (per curiam).

In the case at bar it cannot be said with positive assurance that the arbitration clause cannot be construed to include within its scope the plaintiff's claims of breach of contract, breach of warranty, and negligent design and construction. See Southeastern Enameling Corp. v. General Bronze Corp., 434 F.2d 330 (5th Cir. 1970). The question then becomes whether those claims are so tied in with the claim of fraud and deceit, which is...

To continue reading

Request your trial
75 cases
  • Hartford Fin. Systems v. Fla. Software Serv., Inc.
    • United States
    • U.S. District Court — District of Maine
    • November 2, 1982
    ...Thus, the indemnification claims might well be mooted, in whole or in part, by the arbitration award. Cf. Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir.1979) where nonarbitrable fraud and deceit claim would have been resolved by a decision on the arbitrable issue, entire proceed......
  • Moses Cone Memorial Hospital v. Mercury Construction Corporation
    • United States
    • United States Supreme Court
    • February 23, 1983
    ......April Industries, Inc"., 520 F.2d 650, 654 (CA2 1975) (concurring opinion) ). . Page 33 .  \xC2"... See also Federman v. Empire Fire & Marine Insurance Co., 597 F.2d 798, 808, and n. 15 (CA2 1979); Baltimore Bank ...Heinold Securities, Inc., 661 F.2d 638, 643 (CA7 1981); Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (CA5 1979); Becker ......
  • Austin Mun. Securities, Inc. v. National Ass'n of Securities Dealers, Inc.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • April 15, 1985
    ...Hospital v. Mercury Construction Corp., 460 U.S. 1, 24-25, 103 S.Ct. 927, 941, 74 L.Ed.2d 765 (1983). See also Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir.1979) ("unless it can be said with positive assurance that an arbitration clause is not susceptible of an interpretation w......
  • Sedco, Inc. v. Petroleos Mexicanos Mexican Nat. Oil Co. (Pemex)
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • August 12, 1985
    ...issue...." Commerce Park of DFW Freeport v. Mardian Construction Co., 729 F.2d 334, 338 (5th Cir.1984), quoting Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir.1979). Thus, as a general rule, whenever the scope of an arbitration clause is in question, the court should construe the......
  • Request a trial to view additional results
6 books & journal articles
  • Defendant's standard brief in support of motion to compel arbitration, dismiss and stay proceedings (State Court)
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2014 Appendices Substantive
    • August 16, 2023
    ...1409 (1960). Louis Dreyfus Corp. v. 27,946 Long Tons of Corn, 830 F.2d 1321, 1329 (5th Cir. 1987) (quoting Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir. 1979)). Accord City of Meridian v. Algernon Blair, Inc., 721 F.2d 525 (5th Cir. 1983); Seaboard Coastline R.R. Co. v. Nationa......
  • Defendant's Standard Brief in Support of Motion to Compel Arbitration, Dismiss and Stay Proceedings (State Court)
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2016 Appendices Substantive Forms
    • July 30, 2023
    ...1409 (1960). Louis Dreyfus Corp. v. 27,946 Long Tons of Corn, 830 F.2d 1321, 1329 (5th Cir. 1987) (quoting Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir. 1979)). Accord City of Meridian v. Algernon Blair, Inc., 721 F.2d 525 (5th Cir. 1983); Seaboard Coastline R.R. Co. v. Nationa......
  • Defendant's Standard Brief in Support of Motion to Compel Arbitration, Dismiss and Stay Proceedings (State Court)
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2017 Appendices Substantive
    • August 19, 2023
    ...1409 (1960). Louis Dreyfus Corp. v. 27,946 Long Tons of Corn, 830 F.2d 1321, 1329 (5th Cir. 1987) (quoting Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir. 1979)). Accord City of Meridian v. Algernon Blair, Inc., 721 F.2d 525 (5th Cir. 1983); Seaboard Coastline R.R. Co. v. Nationa......
  • Brief for Emergency Motion for Temporary Stay
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2016 Appendices Substantive Forms
    • July 30, 2023
    ...37 (5th Cir. 1990); Life of America Ins. Co. v. Aetna Life Ins. Co., 744 F.2d 409, 412-13 (5th Cir. 1984); Wick v. Atlantic Marine, Inc., 605 F.2d 166, 168 (5th Cir. A temporary stay of proceedings in the district court pending appeal of the denial of the motion to compel arbitration suppor......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT