Selma Medical Center, Inc. v. Manayan
Decision Date | 23 April 1999 |
Docket Number | No. 1972233., No. 1971845 |
Citation | 733 So.2d 382 |
Parties | SELMA MEDICAL CENTER, INC., d/b/a Columbia Four Rivers Medical Center v. Conrad C. MANAYAN, D.O. |
Court | Alabama Supreme Court |
R.E. Armstrong III and Allen S. Reeves of Reeves & Stewart, P.C., Selma, for appellant.
Robert H. Brogden, Ozark, for appellee.
Selma Medical Center, Inc., doing business as Columbia Four Rivers Medical Center ("the Hospital"), appeals from the denial of its motion to compel arbitration of a dispute between the Hospital and Conrad C. Manayan, D.O.1 We reverse and remand.
In 1996, the Hospital and Dr. Manayan entered a contract that provided, among other things, for the Hospital to pay for Dr. Manayan to move from Pennsylvania to Selma, Alabama, and to lend Dr. Manayan money to help cover his expenses in starting a medical practice in Selma. The contract also provided that Dr. Manayan's indebtedness to the Hospital would be forgiven if he moved to Selma and practiced medicine there for three years.
The contract between the Hospital and Dr. Manayan contained the following provision:
"In the event any dispute shall arise concerning any aspect of this Agreement, such dispute shall be submitted to final and binding arbitration in accordance with the rules established by the American Arbitration Association."
Dr. Manayan moved to Selma, but failed to stay there for three years. He refused to repay the Hospital for the moneys it had expended on his behalf under the terms of the contract. The Hospital sued Dr. Manayan, alleging breach of contract, and it asked the trial court to order that Dr. Manayan "submit to arbitration according to the provisions of the contract." The Hospital supported its motion to compel arbitration with affidavits and a memorandum of law.
Dr. Manayan filed an "answer presenting defenses," in which he asserted the defenses of equitable estoppel and fraud in the inducement of the contract. He also counterclaimed, alleging that the Hospital had engaged in various fraudulent practices with the intent to induce him to sign the contract with the Hospital. Dr. Manayan does not allege misrepresentation or fraud with regard to the arbitration clause itself.
Dr. Manayan filed a statement in opposition to the request for arbitration, claiming that the issue whether the contract was induced by fraud was to be decided by the trial court and not by arbitration because, said Dr. Manayan, the arbitration clause was not broad enough to encompass claims of fraud in the inducement of the contract itself.
The trial court denied the motion to compel arbitration, holding that the "grounds, argument, and conclusions as set out in [Dr. Manayan's] statement in opposition [are] well taken." The trial court denied the Hospital's motion to "reconsider" that ruling, and these appeals followed (see n. 1).2
In support of his opposition to arbitration, Dr. Manayan relied on this Court's decision in Ex parte Lorance, 669 So.2d 890 (Ala.1995). He wrote the following in his memorandum of law addressed to the trial court:
The Hospital, however, relying on Old Republic Insurance Co. v. Lanier, 644 So.2d 1258 (Ala.1994), contends that the trial court erred in refusing to order arbitration. The Hospital maintains that, under the holding in Lanier, the arbitration agreement here is valid and is clearly broad enough to include Dr. Manayan's claims of fraud in the inducement. We agree. We wrote in Lanier:
644 So.2d at 1260 (some citations omitted).
In Lanier, the trial court denied motions to compel arbitration of agreements that contained provisions requiring arbitration of disputes "arising out of the agreements. The Lanier Court, adopting the "narrow" interpretation announced by the United States Court of Appeals for the Ninth Circuit for determining whether the FAA applied, required arbitration pursuant to the language of the arbitration provision. However, although the standard announced by the Ninth Circuit and adopted in Lanier was deemed "narrow," that standard, set out here, clearly supports a holding in this present case that the arbitration clause in the contract between Dr. Manayan and the Hospital is broad enough to require arbitration of these parties' dispute:
"`We interpret "arising hereunder" as synonymous with "arising under the Agreement [containing the arbitration clause]." The phrase "arising under" has been called "relatively narrow as arbitration clauses go." Sinva, Inc. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 253 F.Supp. 359, 364 (S.D.N.Y. 1966). In In re Kinoshita & Co., 287 F.2d 951, 953 (2d Cir.1961), Judge Medina concluded that when an arbitration clause "refers to disputes or controversies `under' or `arising out of the contract," arbitration is restricted to "disputes and controversies relating to the interpretation of the contract and matters of performance." Judge Medina reasoned that the phrase "arising under" is narrower than the phrase "arising out of or relating to," the standard recommended by the American Arbitration Association.'"
Lanier, 644 So.2d at 1262, quoting Mediterranean Enterprises, Inc. v. Ssangyong, 708 F.2d...
To continue reading
Request your trial-
Phillips v. City of Citronelle
... ... on a four-lane road in close proximity to the City's center ... Daniels testified that he had ... Comm'n, 375 So.2d 255 (Ala.1979); Inn of Oxford, Inc. v. City of Oxford, 366 So.2d 690 (Ala.1978); see also ... ...
-
Ex parte AIG Baker Orange Beach Wharf, L.L.C.
...respect to the lease agreement and the guaranty document, and a "dispute or controversy" between the parties. In Selma Medical Center, Inc. v. Manayan, 733 So.2d 382 (Ala.1999), this Court held that an arbitration agreement containing similar language covered a claim of fraudulent inducemen......
-
Acosta v. Trinity Bank (Ex parte Acosta)
...relating to’ a contract. The AIG Baker Court relied upon analogous cases dealing with arbitration clauses, such as Selma Medical Center v. Manayan, 733 So.2d 382 (Ala.1999) (holding that arbitration clause covering any dispute ‘concerning any aspect of’ agreement between doctor and hospital......
-
Hadi Store, LLC v. City of Tuscaloosa, 2180042
... ... 2001) (citing Richardson v. PSB Armor, Inc., 682 So. 2d 438, 440 (Ala. 1996) ; Jones v. Conradi, 673 ... ...