Elizabeth Homes, LLC v. Gantt
Decision Date | 07 November 2003 |
Citation | 882 So.2d 313 |
Parties | ELIZABETH HOMES, L.L.C. v. Roy G. GANTT and Patty R. Gantt. |
Court | Alabama Supreme Court |
Mark D. Ryan, Bay Minette, for appellant.
Submitted on appellant's brief only.
Elizabeth Homes, L.L.C., appeals from the trial court's denial of its motion to compel arbitration. We reverse and remand.
Elizabeth Homes, an Alabama limited liability company, is in the business of constructing single-family, semicustom residential structures. Customers of Elizabeth Homes select a design from the house plans available; according to Elizabeth Homes, the customers are then allowed to modify those plans to meet their individual needs and tastes.
Roy G. Gantt and Patty R. Gantt are residents of Elmore County. On or about March 7, 2001, they contracted with Elizabeth Homes for the construction of an "Ambassadore" style house on property the Gantts owned in Wetumpka. The Gantts agreed to pay Elizabeth Homes $76,500 for the construction of the house. The Gantts entered into a purchase agreement with Elizabeth Homes; that agreement contained the following language:
"Company and Purchaser acknowledge that this agreement necessarily involves interstate commerce by virtue of the materials and components contained in the dwelling and each of the undersigned hereby agrees to arbitrate any and all disputes arising under this agreement and to be bound by the decision of the arbitrator which shall be conducted pursuant to the Construction Industry Rules of the American Arbitration Association."
Elizabeth Homes provided a one-year warranty on its construction.
Elizabeth Homes completed the Gantts' house in December 2001. In June 2002, the Gantts notified Elizabeth Homes of numerous defects and deficiencies in the house. The Gantts allege that Elizabeth Homes failed to repair the defects properly and that many of the defects cannot be repaired.
On January 16, 2003, the Gantts sued Elizabeth Homes, James D. Flanagan,1 and Carl Smith2 in the Elmore Circuit Court, alleging breach of warranty, negligence and/or wantonness, fraudulent misrepresentation, breach of contract, breach of an implied warranty of habitability, unjust enrichment, and breach of implied duties of good faith and fair dealing.
Elizabeth Homes filed a motion seeking to enforce the Gantts' agreement to arbitrate "any and all disputes arising under" the purchase agreement. In support of that motion, Elizabeth Homes submitted a copy of the Gantts' purchase agreement, the affidavit of Earnest Dean, the president of Greenville Cash & Carry, Inc., and the affidavit of James D. Flanagan.
Dean testified as follows in his affidavit:
In his affidavit, Dean also identified the components ordered by Greenville Cash & Carry from out-of-state suppliers for Elizabeth Homes; those components include flooring, decking, and plasterboard. Other components Dean ordered from out-of-state suppliers specifically for the Gantts' house included roofing materials, windows, exterior insulation, shutters, lumber, and metals.
Flanagan, the managing member of Elizabeth Homes, testified in his affidavit that the total expenses, including all materials and labor, incurred by Elizabeth Homes for constructing the Gantts' house was $61,443.76. According to Flanagan, the materials obtained by Greenville Cash & Carry from out-of-state sources represented 15% of that total expense. Flanagan also testified that the total expense for materials, excluding labor, used in the Gantts' house was $29,485.65. According to Flanagan, the materials obtained by Greenville Cash & Carry from out-of-state sources totaled 31% of that amount.
The Gantts opposed the motion to compel arbitration, arguing that, under Sisters of the Visitation v. Cochran Plastering Co., 775 So.2d 759 (Ala.2000), their transaction with Elizabeth Homes did not involve interstate commerce.
On May 27, 2003, the trial court denied Elizabeth Homes' motion.3 Elizabeth Homes appeals pursuant to Rule 4(d), Ala. R.App. P.
Fleetwood Enters., Inc. v. Bruno, 784 So.2d 277, 280 (Ala.2000) (emphasis omitted).
On June 2, 2003, the United States Supreme Court in Citizens Bank v. Alafabco, Inc., 539 U.S. 52, 123 S.Ct. 2037, 2040, 156 L.Ed.2d 46 (2003), rejected the test set out in Sisters of the Visitation. The Alafabco Court stated:
To continue reading
Request your trial-
Am. Bankers Ins. Co. of Fla. v. Tellis
...Automotive, Inc. v. Beavers, 674 So.2d 1260, 1265 n. 1 (Ala.1995) (opinion on application for rehearing).’ ”Elizabeth Homes, L.L.C. v. Gantt, 882 So.2d 313, 315 (Ala.2003) (quoting Fleetwood Enters., Inc. v. Bruno, 784 So.2d 277, 280 (Ala.2000) ).III. In order to answer the ultimate questio......
-
Stephan v. Millennium Nursing & Rehab Ctr., Inc.
...Automotive, Inc. v. Beavers, 674 So.2d 1260, 1265 n. 1 (Ala. 1995) (opinion on application for rehearing).’ " Elizabeth Homes, L.L.C. v. Gantt, 882 So.2d 313, 315 (Ala. 2003) (quoting Fleetwood Enters., Inc. v. Bruno, 784 So.2d 277, 280 (Ala. 2000) (emphasis added) ). See also Kindred Nursi......
-
TitleMax of Ala., Inc. v. Falligant
...Inc. v. Beavers, 674 So. 2d 1260, 1265 n. 1 (Ala. 1995) (opinion on application for rehearing).’ "" ‘ Elizabeth Homes, L.L.C. v. Gantt, 882 So. 2d 313, 315 (Ala. 2003) (quoting Fleetwood Enters., Inc. v. Bruno, 784 So. 2d 277, 280 (Ala. 2000) ).’" SSC Montgomery Cedar Crest Operating Co. v.......
-
Family Sec. Credit Union v. Etheredge
...Automotive, Inc. v. Beavers, 674 So.2d 1260, 1265 n.1 (Ala. 1995) (opinion on application for rehearing).’ " Elizabeth Homes, L.L.C. v. Gantt, 882 So.2d 313, 315 (Ala. 2003) (quoting Fleetwood Enters., Inc. v. Bruno, 784 So.2d 277, 280 (Ala. 2000) ).III. Discussion It is undisputed that FSC......