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Sanderson Farms6/26/2003
rate, and `any doubts thereabout must be resolved in favor of arbitration.' " Gulf Guar., 304 F.3d at 484 (quoting Texaco Exploration & Prod. Co. v. AmClyde Engineered Prods. Co., 243 F.3d 906, 911 (5th Cir. 2001)) (emphasis added); see Russell, 826 So. 2d at 724 (" aiver of arbitration is not a favored finding, and there is a presumption against it") (quoting Miller Brewing Co. v. Fort Worth Distrib. Co., 781 F.2d 494, 497 (5th Cir. 1986)) (emphasis added); Taylor, 826 So. 2d at 713 ("as a matter of federal law, any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration, whether the problem at hand is the construction of the contract language itself or an allegation of waiver, delay, or a like defense to arbitrability") (quoting Moses H. Cone Mem'l Hosp., 460 U.S. at 24-25 (emphasis added)).
.Therefore, under federal and Mississippi precedents, I would hold that no showing of default was made that would justify the circuit court's order. The circuit court exceeded its proper jurisdiction in ruling on the breach of contract claim. I would reverse on the issue appealed by Sanderson Farms.
.One of the "real benefits to the enforcement of arbitration provisions" is supposed to be "avoid the costs of litigation." Adams, 532 U.S. at 124. That benefit diminishes drastically when arbitration costs soar into the tens of thousands of dollars. And when those costs have the pernicious effect of extinguishing a party's right to legal redress, they become not merely exorbitant but unconscionable. The apparent substantive unconscionability of the Agreement, in view of the thousands of dollars which Gatlin seemingly must pay simply to obtain a hearing, necessitates remand to the trial court for necessary findings of fact. The other issues raised by the Gatlins may well be meritorious, but as I have demonstrated, the law of arbitration requires that the arbitrator, not the courts, weigh those merits. I am not unmindful that, by following the established precedents stated herein, a final resolution of this case cannot be reached by this Court today, which would surely be the desire of all parties. However, as we blaze this trail through the jungle known as "arbitration", it is imperative that we do so deliberately, and with meticulous attention to detail, lest we unintentionally complicate or unknowingly contradict established law.
.Therefore, and for all the reasons stated herein, I would reverse and remand to the Jones County Circuit Court, Second Judicial District, for further proceedings in accordance with this opinion. The circuit court should first order Mr. Gatlin to seek a diminution or waiver of fees from the AAA, while retaining jurisdiction over the case. Upon the AAA's making its finding regarding hardship, the circuit court should then conduct a hearing to determine whether Mr. Gatlin's financial situation prevents him from affording the arbitration fee, if it has not been waived. (Sanderson Farms may present evidence at this stage to support the position that Mr. Gatlin is able to bear the cost of arbitration.) If the circuit court determines that the arbitration costs remain unconscionable, it should then apply the Agreement's severability clause to strike the arbitration clause from the Agreement.
SMITH, P.J., AND CARLSON, J., JOIN THIS OPINION.
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