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Brewbaker Motors, Inc. v. Belser

Citations: 776 So. 2d 110; 2000 Ala. LEXIS 335; 2000 WL 1073712Docket: 1990034

Court: Supreme Court of Alabama; August 4, 2000; Alabama; State Supreme Court

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Tanya Belser filed a lawsuit against Brewbaker Motors, Inc., alleging false imprisonment, negligence, malicious prosecution, fraud, and the tort of outrage. Brewbaker sought to compel arbitration based on an arbitration agreement in a repair invoice Belser signed after being arrested while driving a loaner vehicle. The trial court denied Brewbaker's motion to compel arbitration, prompting Brewbaker to appeal.

The facts reveal that Belser was given a loaner vehicle while her own was under repair. After Brewbaker reported the loaner stolen, Belser was arrested while driving it. Brewbaker initially denied knowledge of Belser or the loaner arrangement, but later clarified to the police that the vehicle was indeed loaned to her. Upon retrieving her vehicle, Belser was required to sign a document with an arbitration clause, which she did under duress from her earlier arrest.

Brewbaker argued that Belser's claims fell under the arbitration agreement, asserting the claims were related to the service and repairs of her vehicle. However, the court disagreed, emphasizing the need to interpret the contract terms clearly and as the parties intended.

The appellate court reviews the trial court's denial of arbitration motions using a de novo standard. Ultimately, the appellate court affirmed the trial court's decision to deny the motion to compel arbitration, without specifying the reasons for the trial court's ruling.

In Pacific Enters. Oil Co. v. Howell Petroleum Corp., the principle that any ambiguity in a contract is construed against the drafter is established. The arbitration agreement in question pertains to disputes related to the service and repairs of Belser's vehicle. The record indicates that Belser did not pay for the loaner vehicle nor was it a negotiated condition for her vehicle's repair. She had been using the loaner for two months prior to her arrest and signed the invoice with the arbitration clause on the same day of the arrest. Importantly, the claims stemming from her arrest while using the loaner vehicle are outside the arbitration agreement's scope, which specifically addresses her own vehicle's service and repairs. Consequently, the trial court's decision to deny the motion to compel arbitration is affirmed.