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C. Terry Hunt Indus., Inc. v. Klausner Lumber Two, LLC

Citations: 803 S.E.2d 679; 255 N.C. App. 8; 2017 WL 3480549; 2017 N.C. App. LEXIS 661Docket: COA16-1136

Court: Court of Appeals of North Carolina; August 15, 2017; North Carolina; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by C. Terry Hunt Industries, Inc. against two orders from the Halifax County Superior Court concerning arbitration in a construction contract dispute with Klausner Lumber Two, LLC. The dispute arose from a Preliminary Agreement related to a sawmill project, incorporating terms from a prior Florida Contract, which mandated arbitration for unresolved disputes. Hunt alleged breach of contract and sought legal remedies, but Klausner moved to compel arbitration, which the trial court granted. Hunt's subsequent motions to reconsider were denied, leading to this appeal. The appellate court dismissed the appeal, ruling it interlocutory and not affecting a substantial right, as per N.C. Gen. Stat. 1-277. The court emphasized that orders compelling arbitration do not meet the criteria for immediate appealability under the Revised Uniform Arbitration Act, nor do they deprive parties of access to legal recourse. Judge Inman concurred with the decision but noted the potential for appeals in exceptional cases. The dismissal underscores the judiciary's stance on limiting appellate review of interlocutory arbitration orders unless substantial rights are demonstrably impacted.

Legal Issues Addressed

Arbitration Agreement and Enforceability

Application: The court upheld the enforcement of an arbitration agreement within a preliminary contract, referencing terms from a prior related contract, and confirmed the agreement as valid under the relevant statutes.

Reasoning: On May 31, 2016, the trial court granted Klausner's motion, confirming the existence of a valid arbitration agreement and stating that the 'Preliminary Agreement' included terms from the Florida Contract.

Expressio Unius Est Exclusio Alterius

Application: The court applied the principle of expressio unius est exclusio alterius to infer legislative intent in excluding orders compelling arbitration from appealable orders.

Reasoning: The legal principle of expressio unius est exclusio alterius supports the conclusion that the legislature intentionally excluded additional grounds for appeal.

Interlocutory Orders and Appealability

Application: The court determined that an order compelling arbitration is interlocutory, not affecting a substantial right, and thus not immediately appealable, aligning with established legal precedent.

Reasoning: The court affirms that such an order is interlocutory and not immediately appealable, referencing prior case law that establishes no substantial rights are infringed since parties retain access to the courts.

Revised Uniform Arbitration Act and Grounds for Appeal

Application: The court referenced the Revised Uniform Arbitration Act to clarify the limited grounds for appeal, emphasizing that orders compelling arbitration are not included.

Reasoning: The Revised Uniform Arbitration Act outlines specific grounds for appeal, none of which include an order compelling arbitration.

Substantial Rights and Appellate Review

Application: The appeal was dismissed as the appellant failed to demonstrate that the order compelling arbitration affected a substantial right under applicable statutory provisions.

Reasoning: Hunt's appeal against an order compelling arbitration is deemed improper as it does not affect a substantial right warranting immediate appellate review under N.C. Gen. Stat. 1-277.