River House Partners, LLC v. Clark Construction Inc. of Mississippi, Rader's Insulation Express, LLC, M&R Builders, LLC of Mississippi, First Specialty Insurance Corporation, Navigators Insurance Company & State National Insurance Company ( 2022 )


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  • STATE OF LOUISIANA
    COURT OF APPEAL, FIRST CIRCUIT
    RIVER HOUSE PARTNERS LLC NO. 2022 CW 0658
    VERSUS PAGE 1 OF 2
    CLARK CONSTRUCTION INC. OF
    MISSISSIPPI, RADER’S
    INSULATION EXPRESS, L.L.C.,
    M&R BUILDERS, LLC OF
    MISSISSIPPI, FIRST SPECIALTY
    INSURANCE CORPORATION,
    NAVIGATORS INSURANCE COMPANY
    & STATE NATIONAL INSURANCE AUGUST 12, 2022
    COMPANY, INC.
    In Re: Clark Construction, Inc. of Mississippi, applying for
    supervisory writs, 19th Judicial District Court,
    Parish of East Baton Rouge, No. 695503.
    BEFORE : WHIPPLE, C.J., GUIDRY AND WOLFE, JJ.
    WRIT DENIED. The transcript of the March 15, 2022 hearing
    on the Motion to Compel Arbitration and to Stay proceedings
    filed by defendant, Clark Construction Inc. of Mississippi,
    reveals no evidence was introduced or admitted during the
    hearing, including the subject arbitration agreements. The party
    seeking to enforce an arbitration agreement carries the burden
    of proving the existence of a valid arbitration agreement. See
    Alfortish v. GreenSky, LLC, No. CV 16-15084, 
    2017 WL 699830
    , *3
    (E.D. La. 2/22/17) (citing FIA Card Services, N.A. v. Weaver,
    2010-1372 (La. 3/15/11), 
    62 So.3d 709
    , 719); Duhon v. Activelaf,
    LLC, 2016-0818 (La. 10/19/16), _  So.3d =, 
    2016 WL 6123820
    ,
    cert. denied, U.S. _, 
    2268 L.Ed.2d 700
     (2017); see also
    Landis Construction Co., L.L.C. v. State, 2015-1167 (La. App.
    Ist Cir. 2/29/16), 
    199 So. 3d 1
    , 2-3 (“Evidence not properly and
    officially offered and introduced cannot be considered, even if
    it is physically placed in the record.”). Accordingly, the
    trial court did not err in denying defendant’s motion.
    JMG
    EW
    Whipple, C.J., dissents and would grant the writ.
    Defendants/cross-claim defendants, Rader’s Insulation Express,
    LLC (“Rader’s”) and M&R Builders, LLC of Mississippi (“M&R”), in
    their respective subcontracts with Clark, agreed to arbitrate
    “TaJil claims, disputes, and other matters in controversy
    between the Contractor, Subcontractor, and all individual
    Signatories hereto, arising out of or relating to this
    Subcontract” “in accordance with the current and applicable
    Construction Industry rules and procedures of the American
    Arbitration Association ..” Additionally, by incorporating the
    American Arbitration Association’s Construction Industry
    Arbitration Rules into the arbitration agreement in their
    contract, Clark Construction Inc. of Mississippi and plaintiff,
    River House Partners, LLC (“River House”), agreed that “[t]he
    arbitrator shall have the power to rule on his or her own
    STATE OF LOUISIANA
    COURT OF APPEAL, FIRST CIRCUIT
    NO. 2022 CW 0658
    PAGE 2 OF 2
    Jurisdiction, including any objections with respect to the
    existence, scope, or validity of the arbitration agreement.”
    See e.g. Florida Gas Transmission Co., LLC v. Texas Brine Co.,
    LLC, 2018-0075 (La. App. lst Cir. 7/1/19), 
    285 So.3d 1093
    , 1099-
    1100, writ denied, 2019-01124 (La. 7/17/19), 
    277 So.3d 1180
    , and
    writ denied, 2019-01405 (La. 11/12/19), 
    282 So.3d 225
    ; Crawford
    Professional Drugs, Inc. v. CVS Caremark Corp., 
    748 F.3d 249
    (5th Cir. 2014). Under the circumstances presented herein, the
    issue of whether a party to an arbitration agreement has waived
    arbitration is for the arbitrator to decide. See Arkel
    Constructors, Inc. v. Duplantier & Meric, Architects, L.L.C.,
    2006-1950 (La. App. lst Cir. 7/25/07), 
    965 So.2d 455
    , 461
    {citing International River Center v. Johns-Manville Sales
    Corp., 2002-3060, (La. 12/3/03), 
    861 So.2d 139
    ); see also
    Florida Gas Transmission Co., LLC, 285 So.3d at 1099-1100;
    (citing Howsam v. Dean Witter Reynolds, Inc., 
    537 U.S. 79
    , 84,
    
    123 S.Ct. 588
    , 592, 
    154 L.Ed.2d 491
     (2002) (“the presumption is
    that the arbitrator should decide ‘allegation[s] of waiver,
    delay, or a like defense to arbitrability’”)). Accordingly, I
    would grant the Motion to Compel Arbitration and Stay
    Proceedings filed by Clark Construction Inc. of Mississippi as
    to the claims between River House and Clark, the claims between
    Clark and Rader’s, and the claims between Clark and M&R.
    COURT OF APPEAL, FIRST CIRCUIT
    As)
    DEPUTY CLERK OF COURT
    FOR THE COURT
    

Document Info

Docket Number: 2022CW0658

Filed Date: 8/12/2022

Precedential Status: Precedential

Modified Date: 8/18/2022