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Topolski v. Helena Associaion of Realtors Inc.12/19/2000
APPEAL FROM: District Court of the First Judicial District, In and for the County of Lewis and Clark, Honorable Jeffrey M. Sherlock, Judge Presiding
Submitted on Briefs: June 15, 2000
1 This is an action to enjoin arbitration. Ruling that the parties are bound to arbitrate their dispute, the First Judicial District Court, Lewis and Clark County, granted summary judgment in favor of the Helena Association of REALTORS®, Inc. (Association). Ted Topolski and Bill Walker appeal. We affirm.
2 The issues are:
3 . Whether § 27-5-114(3), MCA, prohibits an agreement to arbitrate disputes between a member of a trade or professional organization and a nonmember, and, if so, whether the statute is preempted by the Federal Arbitration Act.
4 . Whether the terms of Topolski's and Walker's memberships in the Association require them to arbitrate with an individual who is not a member of the Association.
5 The Association is a voluntary trade organization of licensed real estate brokers and salespersons. In December of 1998, Clare Kendall submitted to the Association a form entitled "Request and Agreement to Arbitrate (Nonmember)." In signing the form, Kendall consented to arbitrate a dispute regarding a real estate transaction in which Ted Topolski and Bill Walker, both broker members of the Association, had acted as her agents.
6 Topolski and Walker objected to arbitration proceedings and refused to participate, stating that they had not entered into an agreement or contract with Kendall to arbitrate a dispute with her. The Association disagreed, citing provisions in the REALTORS® Code of Ethics to which all Association members are subject. Faced with the real risk that the Association would proceed with arbitration regardless of their objections, Topolski and Walker filed this lawsuit to enjoin such action.
7 Both parties moved for summary judgment. The District Court found as a matter of law that Topolski and Walker were bound to proceed to arbitration and granted summary judgment to the Association.
Standard of review and applicable legal authority
8 In reviewing a grant of summary judgment, this Court applies the same evaluation as does the district court, based upon Rule 56(c), M.R.Civ.P. Where, as here, the parties have agreed that no material facts are in dispute, the Court must determine whether the district court's conclusion of law-here, regarding arbitrability-is correct. Iwen v. U.S. West Direct, 1999 MT 63, 17, 293 Mont. 512, 17, 977 P.2d 989, 17.
9 The statute invoked in both issues here presented, § 27-5-114, MCA, was adopted in 1985 as part of the Uniform Arbitration Act, §§ 27-5-111 through -324, MCA. It provides:
(1) A written agreement to submit an existing controversy to arbitration is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract.
(2) A written agreement to submit to arbitration any controversy arising between the parties after the agreement is made is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract. Except as permitted under subsection (3), this subsection does not apply to:
(a) claims arising out of personal injury , whether based on contract or tort;
(b) any contract by an individual for the acquisition of real or personal property, services, or money or credit when the total consideration to be paid or furnished by the individual is $5,000 or less;
(c) any agreement concerning or relating to insurance policies or annuity contracts except for those contracts be
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