Green Tree Financial Corp. v. Shoemaker
Decision Date | 14 July 2000 |
Citation | 775 So.2d 149 |
Parties | GREEN TREE FINANCIAL CORPORATION v. Judie Gayle SHOEMAKER and Olen McPherson. |
Court | Alabama Supreme Court |
Robert A. Huffaker and Rachel Sanders-Cochran of Rushton, Stakely, Johnston & Garrett, P.A., Montgomery, for appellant.
Ira B. Colvin, Reform, for appellees.
Judie Shoemaker and Olen McPherson ("the plaintiffs") purchased a mobile home on February 25, 1995. The purchase was financed by the defendant, Green Tree Financial Corporation ("Green Tree").2 In connection with the purchase of this mobile home, the plaintiffs executed a "Manufactured Home Retail Installment Contract and Security Agreement," which listed the seller of the mobile home as Melody Mobile Homes, Inc., and the assignee of the contract as Green Tree.
On October 1, 1998, the plaintiffs sued Green Tree, alleging that Green Tree had invaded their privacy. The plaintiffs had become delinquent in their monthly payments under the contract; they allege that after they became delinquent, Green Tree began a systematic course of harassing them and invading their privacy. On November 12, 1998, Green Tree moved to compel arbitration of the plaintiffs' claims; the court denied that motion on January 22, 1999. Green Tree moved the trial court to alter, amend, or vacate its order. The trial court denied the motion, and Green Tree now appeals the denial of its motion to compel arbitration. We reverse and remand.
In Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995), the United States Supreme Court held that the Federal Arbitration Act ("FAA") governs all contracts falling within Congress's power to regulate under the Commerce Clause. We have since recognized that an arbitration provision will be enforced in Alabama to the extent that enforcement is required by federal law. See, Allied-Bruce Terminix Cos. v. Dobson, 684 So.2d 102 (Ala.1995).
As part of the Manufactured Home Retail Installment Contract and Security Agreement, the plaintiffs agreed to an arbitration provision, which stated:
(Capitalization original; other emphasis added.)
The plain language of this provision requires the plaintiffs to submit to arbitration all controversies that arise from, or relate to, the contract. That language clearly encompasses the plaintiffs' claim alleging invasion of privacy, a claim that arose out of the underlying business transaction of collecting delinquent monthly payments.
In refusing to enforce the arbitration provision, the trial court relied upon Ex parte Discount Foods, Inc., 711 So.2d 992 (Ala.1998) ( ). However, since the trial court entered its order refusing to compel arbitration, we have limited the holding in Ex parte Discount Foods by our decision in Green Tree Financial Corp. v. Vintson, 753 So.2d 497 (Ala.1999). In Vintson, we wrote:
753 So.2d at 504-05. Like the tort alleged in Vintson, the invasion of privacy and harassment alleged by these plaintiffs arose out of the financial transaction entered into between the parties. There can be nothing more "relating to" a financial transaction than the efforts a party takes to collect a debt created as a part of that transaction. Therefore, this case is distinguishable from Ex parte Discount Foods, especially considering that Vintson has limited Ex parte Discount Foods.3
REVERSED AND REMANDED.
COOK, J., concurs in the judgment, but dissents from the rationale.
I share Justice Cook's view that Ex parte Discount Foods, Inc., 711 So.2d 992 (Ala.), cert. denied, 525 U.S. 825, 119 S.Ct. 71, 142 L.Ed.2d 56 (1998), is distinguishable from this present case. I therefore agree with him that the statement in the majority opinion about the current status of Discount Foods is not necessary to a decision in this case.
The plaintiffs Judie Shoemaker and Olen McPherson purchased a mobile home with financing provided by Green Tree Financial Corporation ("Green Tree"). They fell behind in their payments, and Green Tree began telephoning their residence in efforts to collect installments due under the contract. As a result of these telephone calls, the plaintiffs sued Green Tree, alleging "invasion of privacy" and "harassment." Greentree moved to compel arbitration. The trial court, relying on Ex parte Discount Foods, Inc., 711 So.2d 992 (Ala.1998), denied the motion.
The majority reverses the order denying arbitration. In justifying this result, however, the majority "severely limit[s]" Discount Foods. More specifically, the majority states:
775 So.2d at 151 n. 3 (emphasis added). In this, the majority goes too far.
Even without the majority's "severe limit[ation]" of Discount Foods, this case is not inconsistent with Discount Foods, a case in which I fully concurred. In fact, Discount Foods is easily distinguishable from this case. That case involved an action by Discount Foods, Inc., against the Supervalu Company and others, alleging that Supervalu had intentionally interfered with business relations between Discount Foods and a third party. Id. at 993. Those relations arose out of the efforts of Discount Foods and the third party "to acquire a lease of commercial real estate." Id. Supervalu sought to compel arbitration, on the basis of provisions "contained in retail agreements ... between Supervalu and Discount Foods for the supply of groceries and other inventory items to...
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