ARBITRATION - HANOVER INS. CO. V. KIVA LODGE CONDOMINIUM OWNERS ASSOC., INC.
Hanover Ins. Co. v. Kiva Lodge Condominium Owners Assoc., Inc., [Ms. 1141331, Oct. 21, 2016] __ So. 3d __ (Ala. 2016). The Supreme Court affirms an order of the Baldwin Circuit Court granting a motion to stay, pending arbitration, in a commercial contract dispute about construction repairs to a golf course club house and condominiums. The Court construes the phrase "any claim arising out of or related to the contract ... may at the election of either party ... be subject to arbitration ..." as requiring in conformance with Beni Hana of Tokyo, LLC v. Beni Hana, Inc., 73 F. Supp. 3d 238 (S. D. N.Y. 2014) mandatory arbitration upon election of either party to the agreement. In other words, once one party elects to submit the dispute to arbitration, arbitration of that issue becomes mandatory for both parties.
Also, in conformance with Dudley, Hopton-Jones, Sims & Freeman, PLLP v. Knight, 57 So. 3d 68 (Ala. 2010), the issue of whether a party's claims are barred by an applicable statute of limitations is to be considered and ruled upon by the arbitrator, not the court.
Related Documents: Hanover Insurance Co v Kiva Lodge Condominium Owners Association