Advance Am., et al. v. Turner
| Docket Number: | 2002-IA-00953-SCT | |
| Supreme Court: | Opinion Link Opinion Date: 02-26-2004 Opinion Author: Carlson, J. Holding: Reversed and Remanded |
|
| Additional Case Information: |
Topic: Arbitration - Applicability of Federal Arbitration Act - Mutuality of obligation - Application of concurring opinion - Right to jury trial Judge(s) Concurring: Pittman, C.J., Smith and Waller, P.JJ., Cobb and Dickinson, JJ. Non Participating Judge(s): Diaz, J. Dissenting Author : Easley and Graves, JJ. Procedural History: Interlocutory Appeal Nature of the Case: CIVIL - OTHER |
|
| Trial Court: |
Date of Trial Judgment: 05-30-2002 Appealed from: Jasper County Circuit Court Judge: Robert Evans Disposition: Denied motion to compel arbitration. Case Number: 12-0028 |
|
| Consolidated: 2002-IA-00952-SCT McKenzie Check Advance of Mississippi, LLC d/b/a National Cash Advance, Cash Advance Centers, Inc., and Sharon Russell v. Cennie M. Hardy, Andrea James, Dorothy W. Harkless, John W. Buxton, Cinderella Robinson, Tracy Adams, Raymond E. Nelson, Stephen Moore, Gradie Colley, Tommeakka Colley, Anthony O. Davis and Debra A. Davis; Jasper Circuit Court 1st District; LC Case #: 12-0025; Ruling Date: 05/30/2002; Ruling Judge: Robert G. Evans 2002-IA-00956-SCT Advance America, Cash Advance Center of Mississippi, Inc. and Jerald Parrish v. Andrea James, James E. Dixon, Edward Dixon, Kokeisha D. Johnson, Sherry Ann Bowie, Cennie M. Hardy, Darlean M. Milsap and Shemeka Lofton; Jasper Circuit Court 1st District; LC Case #: 12-0026; Ruling Date: 05/30/2002; Ruling Judge: Robert G. Evans 2002-IA-00954-SCT Advance America, Cash Advance Centers of Mississippi, Inc. and Jerald Parrish v. Georgia Pierce, Jearlean Wilson and Janet Evans; Jasper Circuit Court 1st District; LC Case #: 12-0033; Ruling Date: 05/30/2002; Ruling Judge: Robert G. Evans | ||
| Party Name: | Attorney Name: | |||
| Appellant: | Advance America, Cash Advance Centers of Mississippi, Inc. and Jerald Parrish |
RICHARD O. BURSON
RICHARD A. FOLLIS
ROBERT M. BUELL
CHARLES K. SEYFARTH |
||
| Appellee: | Lillian D. Turner | EDDIE JACOB ABDEEN THOMAS LEWIS TULLOS JEANNENE T. PACIFIC |
|
|
Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
|
| Topic: | Arbitration - Applicability of Federal Arbitration Act - Mutuality of obligation - Application of concurring opinion - Right to jury trial |
| Summary of the Facts: | McKenzie Check Advance of Mississippi, LLC, d/b/a National Cash Advance and Advance America, Cash Advance Centers of Mississippi, LLC were denied their motion to compel arbitration against current and former customers. The Supreme Court granted them permission to seek interlocutory review. |
| Summary of Opinion Analysis: | Issue1: Applicability of Federal Arbitration Act NCA and Advance America argue that the court erred in declining to apply the Federal Arbitration Act. The Federal Arbitration Act, 9 U.S.C. ยงยง 1 et seq., applies to all written agreements to arbitrate contained in any contract evidencing a transaction involving commerce. The circuit court declined to apply the FAA to the arbitration agreements in this case because it found that the arbitration agreements were not contained in a written contract evidencing a transaction involving commerce. Unless the agreement to arbitrate is not part of a contract evidencing interstate commerce or is revocable upon such grounds as exist at law or in equity for the revocation of any contract, arbitration is required. In this case, the borrower and lender are citizens of different states. Even though it is not required that the parties to the transaction contemplate an interstate transaction, the customers and NCA and Advance America expressly agreed that the FAA would apply to their transactions. Because the transactions did involve interstate commerce and because the parties agreed their arbitration agreement would be governed by the FAA, the court erred by failing to apply the FAA to that arbitration agreement. Issue 2: Mutuality of obligation The circuit court held that the arbitration agreements were unenforceable contracts under Mississippi law because they lacked mutuality of obligation. NCA and Advance America argue that although consideration is essential to the formation of a valid contract under Mississippi law, mutuality of obligation is not. Mutuality of obligation is not required for an arbitration agreement to be enforceable as long as there is consideration. Therefore, the court erred in finding that the arbitration agreements were unenforceable for lack of mutuality of obligation. Issue 3: Parkerson v. Smith, 817 So. 2d 529 (Miss. 2002) In denying the motion to compel arbitration, the court relied upon Justice Diaz's concurring opinion in Parkerson v. Smith, 817 So. 2d 529 (Miss. 2002). Justice Diaz discussed that he believed the arbitration agreement was unconscionable, because the arbitration provision required Parkerson to pay the attorney's fees and costs if she lost in arbitration. Here, there is no such stipulation found in the arbitration clause. In addition, Justice Diaz's concurring opinion was not the holding of the Court. The trial court also following Justice Diaz's concurring opinion found that the customers did not knowingly, intelligently and voluntarily waive their constitutional rights to a jury trial. A contracting party is under a legal obligation to read a contract before signing it. The customers in this case do not allege that they are illiterate or that NCA or Advance America failed to give them an opportunity to read the arbitration agreement or prevented them from doing so in any way. Therefore, the court erred in finding the customers did not knowingly, intelligently and voluntarily waive their constitutional right to a jury trial when they signed the arbitration agreement. |
Home | Terms of Use | About the JDP | Feedback | Using JDP | MC Law Library | Mississippi Supreme Court
