Case Title: American Family Life Assurance Company of Columbus v. Parker

Citation: 

Docket Number: 1100227

State: alabama

Court: Alabama Supreme Court

Date: 2012-03-16T00:00:00Z

Document:
R e l : 03/16/2012 
Notice: T h i s 
o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e 
p u b l i c a t i o n i n 
t h e 
advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e 
Reporter of 
Decisions, 
Alabama 
A p p e l l a t e 
C o u r t s , 
300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 
((334) 
2 2 9 - 0 6 4 9 ) , o f 
any t y p o g r a p h i c a l o r o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s may be made 
b e f o r e t h e 
o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2011-2012 
1100227 
American Family L i f e Assurance Company o f Columbus 
v. 
R i c h a r d L. Parker 
1100282 
M a r i l y n P h i l l i p s Hunter 
v. 
R i c h a r d L. Parker 
Appeals from F r a n k l i n C i r c u i t Court 
(CV-10-900060) 
1100227, 1100282 
PARKER, 
J u s t i c e . 
A l l 
c a u s e s 
o f 
a c t i o n 
i n v o l v e d i n 
t h e s e 
c o n s o l i d a t e d 
a p p e a l s a r i s e f r o m t h e same f a c t u a l s c e n a r i o . A m e r i c a n 
F a m i l y 
L i f e 
A s s u r a n c e 
Company 
o f 
Columbus 
( " A f l a c " ) 
and 
M a r i l y n 
P h i l l i p s H u n t e r a p p e a l f r o m a j u d g m e n t o f t h e F r a n k l i n 
C i r c u i t 
C o u r t d e n y i n g t h e i r m o t i o n s t o c o m p e l a r b i t r a t i o n . 
We 
r e v e r s e 
and remand. 
F a c t s and P r o c e d u r a l 
H i s t o r y 
A c c o r d i n g t o t h e a f f i d a v i t t e s t i m o n y o f T y l e r G. 
B e n n e t t , 
A f l a c ' s v i c e p r e s i d e n t o f New 
B u s i n e s s O p e r a t i o n s and 
A c c o u n t 
R e l a t i o n s , whose 
a f f i d a v i t 
t e s t i m o n y 
i n d i c a t e s 
t h a t he 
d i d 
h a v e 
a c c e s s 
t o 
A f l a c ' s 
b u s i n e s s 
r e c o r d s 
m a i n t a i n e d 
i n 
t h e 
o r d i n a r y c o u r s e o f A f l a c ' s b u s i n e s s , on J u l y 12, 1990, 
R i c h a r d 
L. 
P a r k e r 
a p p l i e d t o A f l a c 
f o r a c a n c e r - i n d e m n i t y 
i n s u r a n c e 
p o l i c y . 
A f l a c i s s u e d P a r k e r a c a n c e r - i n d e m n i t y p o l i c y , 
p o l i c y 
number A 2 0 4 3 7 3 8 , on 
J u l y 
16, 
1990 
("the 
1990 
p o l i c y " ) . 
The 
t e r m 
o f 
t h e 
1990 
p o l i c y 
was 
m o n t h - t o - m o n t h ; t h e 
m o n t h l y 
p r e m i u m was $28.50. 
B e n n e t t ' s 
a f f i d a v i t 
i n d i c a t e s t h a t A f l a c 
r e c e i v e d payment f o r t h e 1990 
p o l i c y f r o m A u g u s t 25, 1990, 
t o 
A u g u s t 17, 
1996. 
The 
1990 
p o l i c y p r o v i d e d as 
f o l l o w s f o r a 
" P r o g r e s s i v e P a y o u t 
B e n e f i t " : 
2 
1100227, 1100282 
"We 
w i l l p a y t o t h e 
Named I n s u r e d as p r o v i d e d b e l o w , 
an i n d e m n i t y b e n e f i t 
e q u a l t o $30 
( T h i r t y 
D o l l a r s ) 
p e r month f o r e a c h 
w h o l e month 
t h i s 
p o l i c y i s 
i n 
f o r c e 
s u b j e c t t o t h e d a t e s 
t h i s 
b e n e f i t 
c e a s e s t o 
b u i l d . 
T h i s 
b e n e f i t 
w i l l 
c e a s e 
t o b u i l d 
f o r 
t h e 
Named I n s u r e d o n : t h e d a t e o f t h e i n i t i a l d i a g n o s i s 
o f 
i n t e r n a l c a n c e r ; t h e p o l i c y a n n i v e r s a r y d a t e 
n e x t 
f o l l o w i n g t h e 
Named I n s u r e d ' s 6 5 t h b i r t h d a y ; o r , t h e 
2 0 t h 
p o l i c y 
a n n i v e r s a r y , w h i c h e v e r 
o c c u r s 
f i r s t . 
However, r e g a r d l e s s o f t h e age o f t h e Named I n s u r e d 
on t h e ' E f f e c t i v e D a t e ' o f t h i s p o l i c y , 
t h i s 
b e n e f i t 
s h a l l a c c r u e f o r 
a p e r i o d o f a t l e a s t 5 y e a r s u n l e s s 
i n t e r n a l c a n c e r i s d i a g n o s e d 
p r i o r t o t h e 5 t h y e a r 
o f 
c o v e r a g e . 
" T h i s 
b e n e f i t 
w i l l 
be p a i d o n : t h e d a t e t h e 
Named 
I n s u r e d 
i s 
i n i t i a l l y 
d i a g n o s e d 
as 
h a v i n g 
i n t e r n a l 
c a n c e r ; t h e 2 0 t h 
p o l i c y 
a n n i v e r s a r y d a t e ; 
o r , 
t h e d a t e 
t h e Named 
I n s u r e d 
a t t a i n s 
age 79, 
w h i c h e v e r 
o c c u r s 
f i r s t . T h i s b e n e f i t i s 
p a y a b l e o n l y 
once i n t h e l i f e t i m e o f t h e Named I n s u r e d . " 
On May 9, 1996, P a r k e r s u b m i t t e d t o A f l a c an " A p p l i c a t i o n 
f o r 
C a n c e r 
I n s u r a n c e . " 
B e n n e t t ' s 
a f f i d a v i t 
i n d i c a t e s 
t h a t 
P a r k e r ' s 
" a p p l i c a t i o n f o r 
a new p o l i c y p r o v i d e d t h a t t h e ... 
1990 
... p o l i c y 
w o u l d 
t e r m i n a t e on t h e d a t e t h e new 1996 
c a n c e r p o l i c y became e f f e c t i v e . [ P a r k e r ' s ] 1996 p o l i c y became 
e f f e c t i v e on A u g u s t 16, 1996, and t h e 1990 p o l i c y 
t e r m i n a t e d 
e f f e c t i v e A u g u s t 16, 1996." 
P a r k e r ' s " A p p l i c a t i o n f o r C a n c e r 
I n s u r a n c e " 
i n d i c a t e d 
t h a t i t was an 
a p p l i c a t i o n 
f o r t h e 
c o n v e r s i o n o f t h e 1990 p o l i c y . 
The a p p l i c a t i o n f o r 
t h e new 
c a n c e r p o l i c y 
s t a t e d , i n p e r t i n e n t p a r t : 
3 
1100227, 1100282 
"5. I f t h i s i s an a p p l i c a t i o n 
f o r an u p g r a d e 
o f 
c o v e r a g e , 
t h e 
f o l l o w i n g 
c o n d i t i o n s 
a p p l y : (a) I f 
c a n c e r 
i s 
d i a g n o s e d 
b e t w e e n 
t h e 
d a t e 
t h i s 
a p p l i c a t i o n 
i s s i g n e d and t h e E f f e c t i v e D a t e o f t h e 
p o l i c y shown i n t h e P o l i c y S c h e d u l e , t h e p o l i c y f o r 
w h i c h 
t h i s 
a p p l i c a t i o n 
i s made 
s h a l l be 
v o i d , 
and 
c o v e r a g e 
s h a l l 
c o n t i n u e 
u n d e r 
t h e 
t e r m s 
o f 
t h e 
p r e v i o u s 
p o l i c y , 
w h i c h 
may 
r e m a i n 
i n 
f o r c e . 
Any 
b e n e f i t s 
t h a t 
may 
be 
due 
w i l l 
be 
p a i d 
u n d e r 
t h e 
p r e v i o u s p o l i c y . 
(b) The w a i t i n g 
p e r i o d 
and t h e Time 
L i m i t 
on 
C e r t a i n 
D e f e n s e s 
p r o v i s i o n 
s h a l l r u n 
f r o m 
t h e 
E f f e c t i v e D a t e 
o f t h e o r i g i n a l p o l i c y , 
and 
t h e 
o r i g i n a l 
p o l i c y 
w i l l 
be 
t e r m i n a t e d 
as 
o f 
t h e 
E f f e c t i v e D a t e o f t h e new 
p o l i c y . " 
A c a n c e r i n s u r a n c e p o l i c y was 
i s s u e d 
on A u g u s t 16, 1996 
("the 
1996 
p o l i c y " ) , 
and 
h a d 
t h e same p o l i c y number as 
t h e 
1990 
p o l i c y 
A 2 0 4 3 7 3 8 . 
The t e r m o f t h e 1996 p o l i c y was 
m o n t h - t o -
month, 
and 
t h e 
m o n t h l y 
p r e m i u m 
was 
$35.90. 
B e n n e t t ' s 
a f f i d a v i t 
i n d i c a t e s 
t h a t 
A f l a c 
r e c e i v e d payment f o r t h e 
1996 
p o l i c y f r o m O c t o b e r 18, 1996, 
t o A u g u s t 
8, 2009. 
On 
A u g u s t 
5, 
2009, 
P a r k e r 
s u b m i t t e d 
t o 
A f l a c 
an 
" A p p l i c a t i o n 
f o r 
C a n c e r 
I n d e m n i t y 
I n s u r a n c e . " 
P a r k e r ' s 
a p p l i c a t i o n 
i n d i c a t e d 
t h a t 
i t was 
an 
a p p l i c a t i o n 
f o r a 
new 
p o l i c y ; h o w e v e r , 
A f l a c 
i s s u e d 
P a r k e r 
a 
" C a n c e r 
I n d e m n i t y 
I n s u r a n c e " p o l i c y on A u g u s t 16, 2009 ("the 2009 p o l i c y " ) , w i t h 
t h e same p o l i c y number as t h e 1990 
p o l i c y and t h e 1996 
p o l i c y 
-- A 2 0 4 3 7 3 8 . 
B e n n e t t ' s 
a f f i d a v i t i n d i c a t e s 
t h a t 
s u b m i t t e d 
w i t h 
P a r k e r ' s 
a p p l i c a t i o n 
f o r 
t h e 
2009 
p o l i c y 
was 
an 
4 
1100227, 1100282 
" A r b i t r a t i o n A g r e e m e n t " ("the 
a r b i t r a t i o n a g r e e m e n t " ) , w h i c h , 
a c c o r d i n g 
t o B e n n e t t , was 
a " c o n d i t i o n A f l a c r e q u i r e d 
b e f o r e 
b e g i n n i n g 
t h e 
u n d e r w r i t i n g 
p r o c e s s 
on 
[ P a r k e r ' s ] 
A u g u s t 
5, 
2009 A p p l i c a t i o n . " 
I n f a c t , t h e 2009 p o l i c y , 
a c o p y o f w h i c h 
was 
a t t a c h e d 
t o B e n n e t t ' s 
a f f i d a v i t 
and 
w h i c h B e n n e t t 
swore 
was 
a 
" t r u e 
and 
c o r r e c t 
c o p [ y ] , " 
i n c l u d e s 
b o t h 
P a r k e r ' s 
a p p l i c a t i o n 
f o r t h e 2009 p o l i c y and t h e a r b i t r a t i o n a g r e e m e n t . 
The 
a r b i t r a t i o n a g r e e m e n t 
s t a t e s : 
" I , 
RICHARD PARKER 
have 
a p p l i e d 
f o r 
a 
p o l i c y 
o f i n s u r a n c e 
f r o m A F L A C [
1 ] and 
i f AFLAC 
w i l l 
i s s u e 
t h e 
p o l i c y 
t o 
me, 
I 
want 
t o 
make 
t h i s 
a g r e e m e n t w i t h AFLAC. 
" I a g r e e t h a t b i n d i n g 
a r b i t r a t i o n 
w i l l 
be 
u s e d 
t o 
r e s o l v e 
t h e 
f o l l o w i n g 
c l a i m s , 
d i s p u t e s 
o r 
l a w s u i t s : 
" 1 . 
Any 
and 
a l l c l a i m s , 
d i s p u t e s 
o r 
l a w s u i t s 
t h a t 
I h a v e 
c o n c e r n i n g 
my 
AFLAC 
p o l i c y ; a n d / o r 
"2. 
Any 
c l a i m s , 
d i s p u t e s 
o r 
l a w s u i t s 
t h a t 
I have 
c o n c e r n i n g 
any 
r e l a t i o n s h i p s 
t h a t 
my 
AFLAC 
i n s u r a n c e 
p o l i c y 
c r e a t e s 
a n d / o r 
"3. 
Any 
c l a i m s , 
d i s p u t e s 
o r 
l a w s u i t s 
c o n c e r n i n g 
t h e v a l i d i t y o f t h i s 
a r b i t r a t i o n 
a g r e e m e n t ; a n d / o r 
1 A l t h o u g h 
" A f l a c " 
i s 
c a p i t a l i z e d 
i n 
t h e 
a r b i t r a t i o n 
a g r e e m e n t , 
i t d o e s 
n o t 
a p p e a r 
f r o m 
o t h e r 
p o r t i o n s 
o f 
t h e 
r e c o r d t h a t t h e e n t i t y u s e s a l l c a p i t a l l e t t e r s when 
r e f e r r i n g 
t o 
i t s e l f . 
5 
1100227, 1100282 
"4. 
Any 
and 
a l l c l a i m s , 
d i s p u t e s 
o r 
l a w s u i t s t h a t I h a v e t h a t come up f r o m 
t h e 
p r o p o s e d s a l e o f t h e p o l i c y by any a g e n t o r 
e m p l o y e e o f AFLAC, i n c l u d i n g any 
a l l e g a t i o n  
o f f r a u d o r i m p r o p e r 
a c t . 
" I 
u n d e r s t a n d 
t h a t 
b i n d i n g 
a r b i t r a t i o n 
i s 
t h e 
h e a r i n g 
and 
d e t e r m i n i n g 
o f 
a 
d i s p u t e 
I h a v e 
w i t h 
AFLAC by t h r e e p e r s o n s , one c h o s e n by me, 
one 
c h o s e n 
by AFLAC and 
a t h i r d n e u t r a l p e r s o n a p p o i n t e d 
by 
my 
r e p r e s e n t a t i v e 
and 
AFLAC's 
r e p r e s e n t a t i v e 
by 
a g r e e m e n t . 
I 
a l s o 
u n d e r s t a n d 
t h a t 
i f 
my 
r e p r e s e n t a t i v e 
and 
AFLAC's 
r e p r e s e n t a t i v e 
c a n n o t 
a g r e e 
on 
a 
t h i r d 
n e u t r a l 
p a r t y 
t h e n 
a 
l i s t 
o f 
a r b i t r a t o r s 
w i l l 
be 
p r o v i d e d 
by 
t h e 
A m e r i c a n 
A r b i t r a t i o n 
A s s o c i a t i o n 
t o 
my 
r e p r e s e n t a t i v e 
and 
AFLAC's 
r e p r e s e n t a t i v e 
who 
w i l l 
t h e n 
s e l e c t 
t h e 
t h i r d 
n e u t r a l 
a r b i t r a t o r 
f r o m 
t h a t 
l i s t . 
I 
u n d e r s t a n d 
t h a t 
I 
w i l l 
h a v e 
t h e 
c h o i c e 
o f 
h a v i n g 
AFLAC pay 
t h e 
f e e s 
o f t h e 
t h i r d 
n e u t r a l 
a r b i t r a t o r 
o r i f I p r e f e r , AFLAC and 
I w i l l 
e q u a l l y d i v i d e 
t h e 
e x p e n s e s and 
f e e s 
o f 
t h e 
t h i r d 
n e u t r a l 
a r b i t r a t o r . 
B o t h 
I and AFLAC a g r e e 
and 
u n d e r s t a n d 
t h a t 
we 
a r e 
c h o o s i n g 
ARBITRATION 
INSTEAD 
OF 
L I T I G A T I O N 
t o 
r e s o l v e any 
o f t h e above d e s c r i b e d 
d i s p u t e s . B o t h I 
and 
AFLAC 
u n d e r s t a n d 
t h a t 
we 
h a v e 
a 
r i g h t 
o r 
o p p o r t u n i t y 
t o 
l i t i g a t e 
d i s p u t e s 
t h r o u g h 
t h e 
c o u r t 
b u t 
t h a t we 
p r e f e r 
t o r e s o l v e 
o u r 
d i s p u t e s 
t h r o u g h 
a r b i t r a t i o n . 
" B o t h 
I 
and 
AFLAC 
v o l u n t a r i l y 
and 
w i t h 
f u l l 
u n d e r s t a n d i n g 
WAIVE 
ANY 
RIGHT 
WE 
HAVE 
TO 
A 
JURY 
 
T R I A L . 
T h i s 
w a i v e r 
a p p l i e s 
e i t h e r 
t o 
a r b i t r a t i o n 
u n d e r 
t h i s a g r e e m e n t o r t o a c o u r t 
a c t i o n 
f i l e d 
by 
me. 
B o t h I and AFLAC a g r e e and 
u n d e r s t a n d t h a t a l l 
d i s p u t e s 
a r i s i n g 
u n d e r 
l a w , 
w h e t h e r made 
by 
t h e 
c o u r t s 
o r 
t h e 
l e g i s l a t u r e 
o r 
any 
o t h e r 
l a w 
w h i c h 
i n c l u d e s 
b u t 
i s n o t 
l i m i t e d 
t o 
a l l c o n t r a c t , 
t o r t 
and 
t h i r d p a r t y d i s p u t e s , 
w i l l be d e c i d e d 
by t h e 
use 
6 
1100227, 1100282 
o f 
b i n d i n g 
a r b i t r a t i o n . 
The 
t h r e e 
a r b i t r a t o r s 
s e l e c t e d w i l l meet, s e t a d a t e f o r a h e a r i n g , 
n o t i f y 
AFLAC and 
me 
o f t h a t d a t e , have a h e a r i n g 
and make 
t h e 
f i n a l 
d e c i s i o n . 
B o t h 
I 
and 
AFLAC 
a g r e e 
and 
u n d e r s t a n d t h a t t h e a r b i t r a t o r s 
s h a l l h a v e a l l power 
p r o v i d e d 
by 
t h e 
l a w 
s u b j e c t 
t o 
t h i s a g r e e m e n t 
and 
t h e 
i n s u r a n c e 
p o l i c y . 
AFLAC 
and 
I 
a g r e e 
and 
u n d e r s t a n d t h a t my 
i n s u r a n c e 
p o l i c y 
w i t h AFLAC 
and 
a l l 
r e l a t e d 
m a t t e r s 
a r e 
b u s i n e s s 
t r a n s a c t i o n s 
i n v o l v i n g 
i n t e r s t a t e commerce and 
s h a l l be 
g o v e r n e d 
by 
t h e 
F e d e r a l 
A r b i t r a t i o n 
a c t a t 
9 U.S.C. 
S e c t i o n 
1. 
"AFLAC and 
I u n d e r s t a n d 
t h a t 
t h i s 
a r b i t r a t i o n 
a g r e e m e n t 
c o n s t i t u t e s a p o r t i o n 
o f 
my 
a p p l i c a t i o n 
f o r 
i n s u r a n c e . AFLAC and 
I f u r t h e r u n d e r s t a n d 
t h a t 
t h e r e 
i s no 
i n s u r a n c e 
c o n t r a c t u n l e s s 
and 
u n t i l 
my 
a p p l i c a t i o n 
i s a c c e p t e d 
by AFLAC. Upon a c c e p t a n c e o f  
my 
a p p l i c a t i o n 
by 
AFLAC, 
as 
e v i d e n c e d 
by 
t h e 
 
i s s u a n c e 
o f 
an 
i n s u r a n c e 
p o l i c y , 
t h i s 
a r b i t r a t i o n 
 
a g r e e m e n t 
s h a l l be 
i n c o r p o r a t e d 
by 
t h i s 
r e f e r e n c e 
 
i n t o 
any 
i n s u r a n c e 
p o l i c y 
i s s u e d . 
The 
o v e r a l l 
I n s u r a n c e C o n t r a c t 
s h a l l c o n s i s t o f t h i s 
A r b i t r a t i o n 
A g r e e m e n t , 
t h e 
a p p l i c a t i o n 
f o r 
i n s u r a n c e 
and 
t h e 
i n s u r a n c e 
p o l i c y . 
f l 
"By my 
s i g n a t u r e b e l o w , I a g r e e t h a t I h a v e 
r e a d 
t h i s A r b i t r a t i o n A g r e e m e n t and u n d e r s t a n d i t . " 
( C a p i t a l i z a t i o n and some e m p h a s i s i n o r i g i n a l ; f i n a l e m p h a s i s 
added.) 
The 
a r b i t r a t i o n 
a g r e e m e n t 
was 
s i g n e d 
by 
P a r k e r . 
B e n n e t t ' s 
a f f i d a v i t 
s t a t e s 
t h a t 
P a r k e r ' s 
" A u g u s t 
5, 
2009, 
A p p l i c a t i o n 
f o r a C a n c e r I n s u r a n c e 
p o l i c y 
a c k n o w l e d g e d 
t h a t 
' t h e 
o r i g i n a l p o l i c y 
w i l l be 
t e r m i n a t e d 
as 
o f t h e 
E f f e c t i v e 
7 
1100227, 1100282 
D a t e o f t h e 
new 
p o l i c y ' " and 
t h a t 
P a r k e r 
was 
" ' g i v i n g up 
h i s 
c u r r e n t 
p o l i c y and 
i t s b e n e f i t s 
f o r t h e b e n e f i t s p r o v i d e d 
i n 
t h e new 
p o l i c y . ' " 
B e n n e t t ' s a f f i d a v i t a l s o s t a t e s t h a t 
" [ o ] n 
A u g u s t 
16, 
2009, when A f l a c 
i s s u e d 
t h e 
new 
C a n c e r 
I n s u r a n c e 
p o l i c y , 
[ P a r k e r ' s ] 
e a r l i e r 
C a n c e r 
I n s u r a n c e 
p o l i c y 
was 
t e r m i n a t e d . " 
The 
t e r m o f t h e 2009 p o l i c y i s m o n t h - t o - m o n t h , 
and 
t h e 
m o n t h l y 
p r e m i u m 
i s 
$ 6 1 . 7 5 . 
B e n n e t t ' s 
a f f i d a v i t 
i n d i c a t e s t h a t A f l a c r e c e i v e d payment f o r t h e 2009 p o l i c y f r o m 
S e p t e m b e r 14, 
2009, t o 
" t h e p r e s e n t 
d a t e . " 
On A u g u s t 25, 
2010, 
P a r k e r 
s u e d A f l a c a s s e r t i n g a 
c l a i m 
o f b a d - f a i t h 
f a i l u r e t o pay 
p o l i c y b e n e f i t s a l l e g e d l y owed t o 
P a r k e r 
u n d e r 
t h e 
1990 
p o l i c y . 
I n 
h i s 
c o m p l a i n t , 
P a r k e r 
a l l e g e d t h e 
f o l l o w i n g p e r t i n e n t 
f a c t s : 
"3. 
The 
2 0 t h 
a n n i v e r s a r y 
o f 
[ t h e 
1990] 
p o l i c y 
o c c u r r e d 
on J u l y 16, 
2010. 
The amount o f 
P r o g r e s s i v e 
P a y o u t 
B e n e f i t 
s h o u l d 
have b e e n $ 7 , 2 0 0 . 0 0 
on 
t h a t 
d a t e . 
[ P a r k e r ] w r o t e 
[ A f l a c ] on November 9, 2009, t o 
c o n f i r m 
t h a t 
he w o u l d r e c e i v e 
t h a t 
b e n e f i t 
b e c a u s e 
h i s 
a g e n t 
had 
t o l d 
h i m 
he 
w o u l d 
n o t 
r e c e i v e 
s u c h 
b e n e f i t 
b e c a u s e 
he 
had 
p u r c h a s e d 
a 
s u p p l e m e n t a l 
p o l i c y f r o m A [ f l a c ] i n May 
1996. 
... 
No r e s p o n s e 
was 
made t o 
t h i s 
l e t t e r 
and 
no payment o f 
t h i s 
b e n e f i t 
has b e e n f o r t h c o m i n g d e s p i t e 
[ P a r k e r ' s ] 
e n t i t l e m e n t 
t o t h e 
b e n e f i t . " 
P a r k e r 
t h e n a l l e g e d t h a t A f l a c had 
b r e a c h e d t h e 
1990 
p o l i c y , 
t h a t A f l a c had 
" a c t e d 
i n b a d 
f a i t h 
t h r o u g h 
[ i t s ] r e f u s a l 
t o 
8 
1100227, 1100282 
p a y , " 
and t h a t A f l a c h a d " e n g a g e d i n f r a u d , 
m i s r e p r e s e n t a t i o n , 
d e c e i t 
and 
f r a u d u l e n t 
s u p p r e s s i o n . " 
P a r k e r 
a t t a c h e d 
t o 
h i s 
c o m p l a i n t 
t h e 
1990 
p o l i c y 
and 
a 
l e t t e r 
f r o m P a r k e r 
t o A f l a c 
d a t e d November 9, 2009, t h e c o n t e n t s 
o f w h i c h were s u m m a r i z e d 
a b o v e . 
On S e p t e m b e r 14, 2010, 
P a r k e r amended t h e c o m p l a i n t 
t o 
add H u n t e r as a d e f e n d a n t ; P a r k e r ' s amended c o m p l a i n t 
a l l e g e d 
t h a t H u n t e r was 
" t h a t p e r s o n o r a g e n t who 
s o l d a s u p p l e m e n t a l 
p o l i c y t o 
[ P a r k e r ] . " 
A g a i n s t 
H u n t e r , P a r k e r 
a s s e r t e d 
c l a i m s 
o f 
" f r a u d , 
m i s r e p r e s e n t a t i o n , 
d e c e i t 
and 
f r a u d u l e n t 
s u p p r e s s i o n . " 
On O c t o b e r 1, 
2010, 
b a s e d on 
t h e 
a r b i t r a t i o n 
a g r e e m e n t , 
A f l a c 
f i l e d 
a m o t i o n t o c o m p e l a r b i t r a t i o n o f P a r k e r ' s 
c l a i m s 
a g a i n s t 
A f l a c . 
A f l a c 
s u p p o r t e d 
i t s 
m o t i o n 
t o 
c o m p e l 
a r b i t r a t i o n w i t h t h e 
f o l l o w i n g e v i d e n c e : 
1 ) t h e 
a f f i d a v i t 
o f 
V i r g i l 
R. 
M i l l e r , 
A f l a c ' s v i c e p r e s i d e n t 
o f C l i e n t 
S e r v i c e s ; 
2 ) B e n n e t t ' s a f f i d a v i t ; 3 ) t h e a p p l i c a t i o n f o r t h e 1990 
p o l i c y 
and 
t h e 
1990 
p o l i c y 
i t s e l f ; 
4 ) t h e 
a p p l i c a t i o n f o r t h e 
1996 
p o l i c y and 
t h e 1996 
p o l i c y 
i t s e l f ; 
5) t h e a p p l i c a t i o n f o r 
t h e 
2009 p o l i c y and t h e 2009 p o l i c y 
i t s e l f ; 
and 
6) t h e 
a r b i t r a t i o n 
a g r e e m e n t . 
I n h i s a f f i d a v i t t e s t i m o n y , 
M i l l e r 
t e s t i f i e d 
t h a t 
he 
i s e m p l o y e d 
by 
A f l a c 
as 
i t s v i c e 
p r e s i d e n t 
o f 
C l i e n t 
9 
1100227, 1100282 
S e r v i c e s and t h a t t h e a r b i t r a t i o n a g r e e m e n t s u b m i t t e d w i t h t h e 
m o t i o n t o c o m p e l 
a r b i t r a t i o n was 
"a t r u e and c o r r e c t c o p y o f 
t h e 
A r b i t r a t i o n 
A g r e e m e n t 
e n t e r e d 
i n t o 
b e t w e e n 
A f l a c 
and 
[ P a r k e r ] . 
I t i s a b u s i n e s s r e c o r d m a i n t a i n e d i n t h e o r d i n a r y 
c o u r s e o f A f l a c ' s b u s i n e s s 
" 
On O c t o b e r 20, 2010, 
H u n t e r 
a l s o 
f i l e d a m o t i o n t o c o m p e l 
a r b i t r a t i o n . 
I n h e r m o t i o n t o 
c o m p e l 
a r b i t r a t i o n , 
H u n t e r 
s t a t e d 
t h a t 
she 
" a d o p t [ e d ] 
and 
j o i n [ e d ] i n t h e m o t i o n and g r o u n d s s e t f o r [ t h ] by AFLAC i n 
i t s 
M o t i o n t o E n f o r c e A r b i t r a t i o n as i f f u l l y 
s e t f o r t h 
h e r e i n . " 
On 
O c t o b e r 
22, 
2010, 
P a r k e r 
f i l e d 
a m o t i o n 
o p p o s i n g 
A f l a c ' s 
m o t i o n 
t o c o m p e l 
a r b i t r a t i o n . 
P a r k e r a r g u e d 
t h a t 
A f l a c ' s m o t i o n t o c o m p e l 
a r b i t r a t i o n s h o u l d be d e n i e d b e c a u s e 
P a r k e r ' s 
c l a i m s 
a r e 
b a s e d 
on 
t h e 
1990 
p o l i c y , 
w h i c h 
u n d i s p u t e d l y d i d n o t i n c l u d e an a r b i t r a t i o n p r o v i s i o n . 
P a r k e r 
d i d 
n o t s u b m i t any e v i d e n c e i n s u p p o r t o f h i s m o t i o n . 
On 
November 
2, 
2010, 
t h e 
c i r c u i t 
c o u r t 
c o n d u c t e d 
a 
h e a r i n g on A f l a c ' s and H u n t e r ' s m o t i o n s t o c o m p e l 
a r b i t r a t i o n , 
and on November 8, 2010, 
i t d e n i e d t h e m o t i o n s . 
A f l a c 
and 
H u n t e r s e p a r a t e l y a p p e a l e d . 
We h a v e c o n s o l i d a t e d t h e a p p e a l s 
f o r 
t h e p u r p o s e o f w r i t i n g one 
o p i n i o n . 
S t a n d a r d o f R e v i e w 
10 
1100227, 1100282 
" ' T h i s 
C o u r t ' s 
r e v i e w 
o f 
an 
o r d e r 
g r a n t i n g 
o r 
d e n y i n g 
a 
m o t i o n 
t o 
c o m p e l 
a r b i t r a t i o n 
i s de 
n o v o . 
F i r s t 
A m e r i c a n 
 
T i t l e I n s . C o r p . v. 
S i l v e r n e l l , 
744 So. 2d 
883, 886 
( A l a . 1 9 9 9 ) ; C r i m s o n I n d u s . , I n c .  
v. 
K i r k l a n d , 
736 
So. 
2d 
597 , 
600 
( A l a . 
199 9 ) ; P a t r i c k Home C t r . , I n c . v. K a r r , 73 0 
So. 2d 1171 
( A l a . 1 9 9 9 ) . ' 
" U n i t e d W i s c o n s i n L i f e I n s . Co. v. T a n k e r s l e y , 88 0 
So. 2d 385, 389 
( A l a . 2 0 0 3 ) . F u r t h e r m o r e : 
"'"A m o t i o n t o c o m p e l 
a r b i t r a t i o n 
i s 
a n a l o g o u s 
t o 
a 
m o t i o n 
f o r 
summary j u d g m e n t . 
T r a n S o u t h F i n .  
C o r p . v. 
B e l l , 
739 
So. 
2d 
1110, 
1114 
( A l a . 
1 9 9 9 ) . 
The 
p a r t y 
s e e k i n g t o c o m p e l a r b i t r a t i o n 
has 
t h e 
b u r d e n 
o f 
p r o v i n g 
t h e 
e x i s t e n c e 
o f a c o n t r a c t 
c a l l i n g 
f o r 
a r b i t r a t i o n 
and p r o v i n g 
t h a t 
t h a t 
c o n t r a c t 
e v i d e n c e s 
a 
t r a n s a c t i o n 
a f f e c t i n g 
i n t e r s t a t e 
commerce. I d . ' A f t e r a m o t i o n t o 
c o m p e l 
a r b i t r a t i o n 
has b e e n made 
and 
s u p p o r t e d , t h e b u r d e n 
i s on 
t h e 
non-movant 
t o 
p r e s e n t 
e v i d e n c e 
t h a t 
t h e 
s u p p o s e d 
a r b i t r a t i o n 
a g r e e m e n t 
i s 
n o t 
v a l i d 
o r does 
n o t 
a p p l y t o 
t h e 
d i s p u t e i n q u e s t i o n . " ' 
" ' F l e e t w o o d E n t e r s . , I n c . v. B r u n o , 7 
84 So. 
2d 277, 280 
( A l a . 2000) 
( q u o t i n g J i m B u r k e  
A u t o . , 
I n c . v. B e a v e r s , 674 
So. 
2d 12 60 
, 
1265 n. 1 ( A l a . 1995) 
( e m p h a s i s 
o m i t t e d ) ) . ' 
"Vann v. 
F i r s t Cmty. C r e d i t C o r p . , 834 So. 2d 
7 5 1 , 
753 
( A l a . 2 0 0 2 ) . " 
C a r t w r i g h t v. M a i t l a n d , 30 So. 3d 405, 408-09 ( A l a . 2 0 0 9 ) . 
11 
1100227, 1100282 
D i s c u s s i o n 
I n G r e e n T r e e F i n a n c i a l C o r p . o f A l a b a m a v. V i n t s o n , 
7 53 
So. 
2d 
497, 
501-02 
( A l a . 1 9 9 9 ) , 
t h i s C o u r t 
h e l d : 
" S e c t i o n 
2 
o f 
t h e 
F e d e r a l 
A r b i t r a t i o n 
A c t 
('FAA') p r o v i d e s 
t h a t 
'[a] w r i t t e n p r o v i s i o n i n 
any 
... 
c o n t r a c t 
e v i d e n c i n g 
a 
t r a n s a c t i o n 
i n v o l v i n g 
[ i n t e r s t a t e ] 
commerce 
t o 
s e t t l e 
by 
a r b i t r a t i o n 
a 
c o n t r o v e r s y 
t h e r e a f t e r a r i s i n g o u t 
o f s u c h 
c o n t r a c t 
o r t r a n s a c t i o n ... 
s h a l l be 
v a l i d , 
i r r e v o c a b l e , 
and 
e n f o r c e a b l e . ' 
9 U.S.C. § 2. 
M o r e o v e r , 
t h e 
Supreme 
C o u r t o f t h e 
U n i t e d 
S t a t e s 
has 
s t a t e d t h a t 
t h e 
FAA 
e s t a b l i s h e s 
a 
s t r o n g 
f e d e r a l 
p o l i c y 
f a v o r i n g 
a r b i t r a t i o n . Moses 
H. 
Cone Mem'l Hosp. v. 
M e r c u r y 
 
C o n s t r . C o r p . , 460 
U.S. 
1, 2 4 - 2 5 , 103 
S. C t . 927, 
74 
L. Ed. 
2d 
765 
(1983) 
( t h e FAA 
' e s t a b l i s h e s t h a t , 
as 
a m a t t e r o f 
f e d e r a l l a w , 
any 
d o u b t s c o n c e r n i n g 
t h e 
s c o p e 
o f 
a r b i t r a b l e i s s u e s 
s h o u l d 
be 
r e s o l v e d 
i n 
f a v o r 
o f 
a r b i t r a t i o n ' ) . 
A c c o r d i n g l y , 
t r i a l 
c o u r t s 
a r e 
r e q u i r e d 
t o s t a y 
o r d i s m i s s 
p r o c e e d i n g s 
and 
t o 
c o m p e l 
a r b i t r a t i o n 
when 
t h e 
p a r t i e s h a v e 
e n t e r e d 
i n t o 
a 
v a l i d 
c o n t r a c t 
c o n t a i n i n g 
an 
a r b i t r a t i o n 
a g r e e m e n t , and 
a t r i a l 
c o u r t ' s d e n i a l o f a m o t i o n t o 
c o m p e l a r b i t r a t i o n 
i s s u b j e c t 
t o a p p e a l . 
See, 
e.g., 
P a t r i c k Home C e n t e r , I n c . v. K a r r , 
730 
So. 
2d 
1171, 
1172 
( A l a . 1 9 9 9 ) . T h i s C o u r t 
w i l l 
a p p l y 
t h e de novo 
s t a n d a r d 
o f r e v i e w 
t o a 
t r i a l 
c o u r t ' s 
o r d e r 
d e n y i n g 
a m o t i o n t o c o m p e l a r b i t r a t i o n . 
I d . " 
F i r s t , 
A f l a c and 
H u n t e r a r g u e t h a t t h e y 
s a t i s f i e d 
t h e i r 
i n i t i a l 
b u r d e n s 
i n 
p r o v i n g 
t h a t 
a 
c o n t r a c t 
c a l l i n g 
f o r 
a r b i t r a t i o n 
e x i s t e d . 
I n 
so 
a r g u i n g , 
A f l a c 
and 
H u n t e r 
r e l y 
upon t h e 
f o l l o w i n g e v i d e n c e 
s u b m i t t e d 
t o t h e 
c i r c u i t 
c o u r t : 
t h e 
a f f i d a v i t s 
o f M i l l e r 
and 
B e n n e t t , t h e p e r t i n e n t p a r t s 
o f 
w h i c h a r e d e t a i l e d a b o v e ; t h e 
a r b i t r a t i o n a g r e e m e n t ; 
P a r k e r ' s 
12 
1100227, 1100282 
a p p l i c a t i o n 
f o r 
t h e 
1990 
p o l i c y 
and 
t h e 
1990 
p o l i c y 
i t s e l f ; 
P a r k e r ' s 
a p p l i c a t i o n 
f o r 
t h e 
1996 
p o l i c y 
and 
t h e 
1996 
p o l i c y 
i t s e l f ; 
and 
P a r k e r ' s 
a p p l i c a t i o n 
f o r 
t h e 
2009 p o l i c y 
and 
t h e 
2009 p o l i c y 
i t s e l f . P a r k e r a r g u e s t h a t A f l a c 
and H u n t e r 
f a i l e d 
t o 
e s t a b l i s h 
t h a t 
t h e 
a r b i t r a t i o n 
a g r e e m e n t 
e x i s t e d . 
S p e c i f i c a l l y , 
P a r k e r a r g u e s t h a t 
" [ t ] h e r e 
i s 
no 
e v i d e n c e 
i n 
t h e r e c o r d t h a t shows t h a t t h e p u r p o r t e d a r b i t r a t i o n a g r e e m e n t 
was 
a t t a c h e d 
t o 
t h e 
2009 p o l i c y . " 
P a r k e r ' s b r i e f , 
a t 
p. 
18. 
We 
a g r e e w i t h A f l a c ' s 
and 
H u n t e r ' s a r g u m e n t t h a t t h e 
e v i d e n c e 
t h e y 
p r e s e n t e d 
i n 
s u p p o r t 
o f 
t h e i r 
m o t i o n s 
t o 
c o m p e l 
a r b i t r a t i o n was 
s u f f i c i e n t e v i d e n c e i n d i c a t i n g t h a t a c o n t r a c t 
c a l l i n g 
f o r 
a r b i t r a t i o n 
e x i s t e d . 
As 
t h e 
u n d i s p u t e d 
e v i d e n c e 
s e t 
f o r t h 
above shows, 
t h e 
1990 
p o l i c y was 
t e r m i n a t e d i n f a v o r o f t h e 
1996 
p o l i c y , 
w h i c h , 
i n 
t u r n , 
was 
t e r m i n a t e d 
i n 
f a v o r 
o f 
t h e 
2009 p o l i c y , 
w h i c h 
i n c o r p o r a t e d 
t h e 
a r b i t r a t i o n 
a g r e e m e n t . 
T h e r e f o r e , 
by 
p r o d u c i n g t h e 2009 p o l i c y , w h i c h i n c o r p o r a t e d t h e 
a r b i t r a t i o n 
a g r e e m e n t , A f l a c 
and 
H u n t e r met 
t h e i r b u r d e n o f p r o v i n g 
t h a t 
a c o n t r a c t 
c a l l i n g 
f o r 
a r b i t r a t i o n 
e x i s t e d . 
The 
p a r t i e s 
h a v e s t i p u l a t e d 
t h a t t h e 
c o n t r a c t 
c o n t a i n i n g 
t h e 
a r b i t r a t i o n 
a g r e e m e n t e v i d e n c e s 
a t r a n s a c t i o n 
a f f e c t i n g 
13 
1100227, 
1100282 
i n t e r s t a t e commerce. 
Thus, t h e b u r d e n s h i f t e d t o P a r k e r " ' " t o 
p r e s e n t 
e v i d e n c e 
t h a t t h e s u p p o s e d a r b i t r a t i o n 
a g r e e m e n t i s 
n o t 
v a l i d o r d o e s n o t a p p l y 
t o t h e d i s p u t e 
i n q u e s t i o n . " ' " 
C a r t w r i g h t , s u p r a 
( q u o t i n g o t h e r c a s e s ) . 
P a r k e r ' s a r g u m e n t on 
a p p e a l 
t h a t " [ t ] h e r e i s no e v i d e n c e i n t h i s r e c o r d t h a t 
shows 
t h a t t h e p u r p o r t e d 
a r b i t r a t i o n a g r e e m e n t was a t t a c h e d t o t h e 
2009 p o l i c y " i s n o t c o n s i s t e n t w i t h t h e f a c t s o f t h i s c a s e . As 
s e t f o r t h a b o v e , B e n n e t t ' s a f f i d a v i t t e s t i m o n y 
i n d i c a t e s t h a t 
a t t a c h e d t o t h e a f f i d a v i t was a t r u e and c o r r e c t c o p y o f t h e 
2009 
p o l i c y , 
w h i c h 
i n c o r p o r a t e d 
t h e 
a r b i t r a t i o n 
a g r e e m e n t . 
T h e r e f o r e , 
P a r k e r has i n c o r r e c t l y 
i n t e r p r e t e d t h e e v i d e n c e i n 
t h e 
r e c o r d . 
I n s u p p o r t o f h i s a r g u m e n t t h a t t h e a r b i t r a t i o n a g r e e m e n t 
i s n o t a v a l i d c o n t r a c t t o a r b i t r a t e , 
P a r k e r 
a l s o a r g u e s 
t h a t 
" [ i ] t 
i s i m p o r t a n t 
t o n o t e 
t h a t 
t h e p u r p o r t e d 
a r b i t r a t i o n 
a g r e e m e n t was n o t s i g n e d on b e h a l f o f AFLAC." 
P a r k e r ' s 
b r i e f , 
a t p. 19. 
However, P a r k e r h a s f a i l e d t o s u p p o r t h i s a r g u m e n t 
t h a t t h e a r b i t r a t i o n 
a g r e e m e n t 
f a i l s 
b e c a u s e A f l a c d i d n o t 
s i g n 
i t w i t h 
any 
l e g a l 
a u t h o r i t y . 
T h i s 
C o u r t 
h e l d 
i n 
U n i v e r s i t y o f S o u t h A l a b a m a v . P r o g r e s s i v e I n s u r a n c e Co., 90 
4 
So. 2d 1242, 1247-48 
( A l a . 
2 0 0 4 ) , as f o l l o w s : 
14 
1100227, 1100282 
" R u l e 2 8 ( a ) ( 1 0 ) , 
A l a . R. App. 
P., 
r e q u i r e s 
t h a t 
a r g u m e n t s 
i n 
an 
a p p e l l a n t ' s 
... 
b r i e f 
c o n t a i n 
' c i t a t i o n s 
t o 
t h e 
c a s e s , 
s t a t u t e s , 
o t h e r 
a u t h o r i t i e s , and p a r t s o f t h e r e c o r d 
r e l i e d on.' 
The 
e f f e c t o f a f a i l u r e t o c o m p l y w i t h R u l e 2 8 ( a ) ( 1 0 ) i s 
w e l l 
e s t a b l i s h e d : 
" ' I t 
i s s e t t l e d 
t h a t 
a 
f a i l u r e 
t o 
c o m p l y 
w i t h 
t h e 
r e q u i r e m e n t s 
o f R u l e 
2 8 ( a ) ( [ 1 0 ] ) 
r e q u i r i n g 
c i t a t i o n 
o f 
a u t h o r i t y 
f o r 
a r g u m e n t s p r o v i d e s 
t h e C o u r t w i t h 
a 
b a s i s 
f o r d i s r e g a r d i n g t h o s e a r g u m e n t s : 
"'"When 
an 
a p p e l l a n t 
f a i l s 
t o 
c i t e 
any 
a u t h o r i t y 
f o r 
an 
a r g u m e n t 
on 
a 
p a r t i c u l a r 
i s s u e , 
t h i s 
C o u r t 
may 
a f f i r m 
t h e 
j u d g m e n t as t o t h a t i s s u e , f o r i t 
i s 
n e i t h e r 
t h i s C o u r t ' s d u t y 
n o r 
i t s 
f u n c t i o n 
t o 
p e r f o r m 
an 
a p p e l l a n t ' s 
l e g a l 
r e s e a r c h . 
R u l e 
2 8 ( a ) ( [ 1 0 ] ) ; 
S p r a d l i n 
v . 
B i r m i n g h a m A i r p o r t A u t h o r i t y , 
613 
So. 
2d 
347 
( A l a . 1 9 9 3 ) . " 
" ' C i t y 
o f 
B i r m i n g h a m 
v. 
B u s i n e s s 
R e a l t y 
 
I n v . 
Co., 
722 
So. 
2d 747, 
752 
( A l a . 1 9 9 8 ) . 
See 
a l s o McLemore v. 
F l e m i n g , 
604 
So. 
2d 
353 
( A l a . 
1 9 9 2 ) ; 
S t o v e r 
v. 
A l a b a m a 
Farm  
B u r e a u 
I n s . 
Co., 
467 
So. 
2d 
251 
( A l a . 
1 9 8 5 ) ; 
and 
Ex 
p a r t e 
R i l e y , 464 
So. 
2d 
92 
( A l a . 
1 9 8 5 ) . ' 
"Ex 
p a r t e S h o w e r s , 812 
So. 
2d 277, 
281 
( A l a . 2 0 0 1 ) . 
'[W]e 
c a n n o t 
c r e a t e 
l e g a l 
a r g u m e n t s 
f o r 
a 
p a r t y 
b a s e d 
on 
u n d e l i n e a t e d 
g e n e r a l 
p r o p o s i t i o n s 
u n s u p p o r t e d by 
a u t h o r i t y o r a r g u m e n t . ' 
S p r a d l i n 
v. 
 
S p r a d l i n , 
601 
So. 
2d 
76, 
79 
( A l a . 1 9 9 2 ) . " 
T h e r e f o r e , 
we n e e d n o t 
c o n s i d e r 
t h i s 
a r g u m e n t . 
15 
1100227, 1100282 
M o r e o v e r , 
t h e mere 
f a c t 
t h a t 
n e i t h e r 
A f l a c 
n o r 
H u n t e r 
e x e c u t e d t h e a r b i t r a t i o n a g r e e m e n t 
i s n o t d i s p o s i t i v e 
o f t h e 
i s s u e w h e t h e r a v a l i d c o n t r a c t c a l l i n g f o r a r b i t r a t i o n 
e x i s t e d 
b e c a u s e a c c e p t a n c e o f a c o n t r a c t c a n be d e m o n s t r a t e d i n ways 
o t h e r 
t h a n 
e x e c u t i o n . 
I n 
M e r r i l l 
L y n c h , 
P i e r c e , 
F e n n e r 
& 
 
S m i t h , I n c . v. K i l g o r e , 
751 So. 2d 8 ( A l a . 1 9 9 9 ) , a c l i e n t 
o f 
M e r r i l l 
L y n c h ' s 
e x e c u t e d a c a s h - m a n a g e m e n t - a c c o u n t 
("CMA") 
a g r e e m e n t 
o f f e r e d t o h i m by 
M e r r i l l 
L y n c h ; no 
M e r r i l l 
L y n c h 
r e p r e s e n t a t i v e s i g n e d t h e CMA 
a g r e e m e n t . 
I n c l u d e d i n t h e 
CMA 
a g r e e m e n t was a " p r e d i s p u t e a r b i t r a t i o n a g r e e m e n t . " 
A d i s p u t e 
a r o s e 
c o n c e r n i n g t h e 
CMA 
a g r e e m e n t , 
and 
t h e 
c l i e n t 
s u e d 
M e r r i l l 
L y n c h . 
M e r r i l l 
L y n c h moved t o c o m p e l 
a r b i t r a t i o n 
b a s e d upon t h e a r b i t r a t i o n a g r e e m e n t i n t h e CMA a g r e e m e n t ; 
t h e 
t r i a l 
c o u r t d e n i e d M e r r i l l L y n c h ' s m o t i o n , and M e r r i l l 
L y n c h 
a p p e a l e d . 
On 
a p p e a l , M e r r i l l 
L y n c h 
a r g u e d 
" t h a t 
t h e 
t r i a l 
c o u r t 
e r r e d i n d e n y i n g i t s m o t i o n t o c o m p e l 
a r b i t r a t i o n 
s o l e l y 
on 
t h e 
b a s i s t h a t no r e p r e s e n t a t i v e o f M e r r i l l L y n c h h a d 
s i g n e d 
t h e 
CMA 
a g r e e m e n t 
c o n t a i n i n g t h e a r b i t r a t i o n a g r e e m e n t . " 
I n 
r e v e r s i n g t h e 
t r i a l 
c o u r t ' s j u d g m e n t 
d e n y i n g M e r r i l l 
L y n c h ' s 
m o t i o n t o c o m p e l 
a r b i t r a t i o n , 
t h i s C o u r t 
s t a t e d : 
16 
1100227, 1100282 
" I n A l l i e d - B r u c e 
T e r m i n i x 
Cos. 
v. 
Dobson, 
68 4 
So. 
2d 
102 
( A l a . 1 9 9 5 ) , we 
w r o t e : 
"'"The A r b i t r a t i o n A c t e s t a b l i s h e s t h a t , as 
a 
m a t t e r 
o f 
f e d e r a l 
l a w , 
any 
d o u b t s 
c o n c e r n i n g 
t h e 
s c o p e o f 
a r b i t r a b l e 
i s s u e s 
s h o u l d be r e s o l v e d i n f a v o r o f 
a r b i t r a t i o n , 
w h e t h e r 
t h e 
p r o b l e m 
a t 
h a n d 
i s 
t h e 
c o n s t r u c t i o n 
o f 
t h e 
c o n t r a c t 
l a n g u a g e 
i t s e l f 
o r an 
a l l e g a t i o n 
o f w a i v e r , 
d e l a y , 
o r 
l i k e d e f e n s e t o 
a r b i t r a b i l i t y . " ' 
"684 
So. 
2d 
a t 
107 
( q u o t i n g Moses H. Cone M e m o r i a l  
Hosp. v. M e r c u r y C o n s t r . 
C o r p . , 
460 
U.S. 
1, 
2 4 - 2 5 , 
103 
S. 
C t . 
927, 
74 
L. 
Ed. 
2d 
765 
( 1 9 8 3 ) ) . 
However, 
we 
h a v e 
h e l d 
t h a t 
a 
p a r t y 
c a n n o t 
be 
r e q u i r e d 
t o 
a r b i t r a t e a d i s p u t e 
t h a t he 
o r she 
d i d n o t a g r e e 
t o 
a r b i t r a t e . 
See 
C a p i t a l 
I n v . G r o u p , I n c . v. Woodson, 
694 
So. 
2d 
1268 
( A l a . 1 9 9 7 ) . 
f l 
" T h i s 
C o u r t 
has 
h e l d 
t h a t 
t h e 
o b j e c t 
o f 
a 
s i g n a t u r e 
on 
a 
c o n t r a c t 
i s t o show m u t u a l i t y 
and 
a s s e n t , 
and 
t h a t 
m u t u a l i t y 
and 
a s s e n t 
can 
be 
m a n i f e s t e d 
i n ways 
o t h e r 
t h a n 
a 
s i g n a t u r e . 
See 
L a w l e r M o b i l e Homes, I n c . v. 
T a r v e r , 
492 
So. 
2d 
297 
( A l a . 
1 9 8 6 ) ; Ex p a r t e 
P o i n t e r , 714 
So. 
2d 
971 
( A l a . 
1 9 9 7 ) . 
U n l e s s 
r e q u i r e d 
by 
a 
s t a t u t e 
t o 
be 
i n 
w r i t i n g , a c o n t r a c t d o e s n o t have t o be s i g n e d t o 
be 
e n f o r c e a b l e , 
so 
l o n g 
as 
i t i s a c c e p t e d 
and 
a c t e d 
u p o n . T a r v e r , 
492 
So. 
2d a t 
304. 
" A l t h o u g h 
no 
r e p r e s e n t a t i v e 
o f 
M e r r i l l 
L y n c h 
s i g n e d t h e CMA 
a g r e e m e n t , t h e a b s e n c e o f a 
s i g n a t u r e 
by 
a M e r r i l l L y n c h e m p l o y e e d o e s n o t 
i n v a l i d a t e 
t h e 
a g r e e m e n t . 
'The 
[ F e d e r a l 
A r b i t r a t i o n 
A c t ] 
o n l y 
r e q u i r e s 
t h a t 
t h e r e 
be 
a 
" w r i t t e n p r o v i s i o n " i n 
a 
" c o n t r a c t " ; 
i t does 
n o t 
s p e c i f y 
t h a t 
a 
p a r t y ' s 
a s s e n t 
t o 
t h e 
t e r m s 
o f 
a 
c o n t r a c t 
c o n t a i n i n g 
an 
a r b i t r a t i o n p r o v i s i o n can be e v i d e n c e d o n l y by 
t h a t 
p a r t y ' s 
s i g n a t u r e . ' 
Ex 
p a r t e R u s h , 730 
So. 
2d 
1175 
17 
1100227, 1100282 
( A l a . 1 9 9 9 ) . C o n d u c t o f one p a r t y t o a c o n t r a c t f r o m 
w h i c h t h e o t h e r may 
r e a s o n a b l y 
draw an i n f e r e n c e 
o f 
a s s e n t 
t o an a g r e e m e n t i s e f f e c t i v e 
as 
a c c e p t a n c e . 
A n d e r s o n B r o t h e r s 
C h r y s l e r P l y m o u t h Dodge, I n c . 
v. 
 
H a d l e y , 
720 
So. 
2d 
895 
( A l a . 1998) 
( t h e 
f a i l u r e 
o f 
a p a r t y t o s i g n a c o n t r a c t on a s i g n a t u r e 
l i n e 
n e x t 
t o 
an 
a r b i t r a t i o n 
p r o v i s i o n 
d i d 
n o t 
r e n d e r 
t h e 
p r o v i s i o n 
u n e n f o r c e a b l e ) . 
I n 
a d d i t i o n , 
i t 
i s 
a 
g e n e r a l 
p r i n c i p l e 
o f 
c o n t r a c t 
l a w 
t h a t 
when 
a 
c o n t r a c t 
i s 
s i g n e d 
by 
a 
p a r t y 
o r 
p a r t i e s 
' t o 
be 
c h a r g e d , ' a c o n t r a c t can be e n f o r c e d where t h e 
o t h e r 
p a r t y 
f a i l s 
t o s i g n t h e 
c o n t r a c t . See A n s e l m o Meat  
Co. 
v. 
R i l e y , 
533 
So. 
2d 552 
( A l a . 1 9 8 8 ) . 
"The 
r e c o r d 
i n d i c a t e s 
t h a t 
M e r r i l l 
L y n c h 
p r o v i d e d 
[ t h e 
c l i e n t ] 
w i t h 
t h e 
CMA 
a g r e e m e n t 
and 
t h a t 
[ t h e c l i e n t ] e x e c u t e d i t . I n a d d i t i o n , 
M e r r i l l 
L y n c h a c t e d 
i n r e c o g n i t i o n o f t h e f o r m a l 
a g r e e m e n t . 
T h e r e f o r e , 
we c o n c l u d e t h a t M e r r i l l L y n c h 
m a n i f e s t e d 
a s s e n t 
t o t h e t e r m s o f t h e a g r e e m e n t , i n c l u d i n g t h e 
a r b i t r a t i o n 
a g r e e m e n t 
c o n t a i n e d 
t h e r e i n , 
n o t w i t h s t a n d i n g 
t h e 
a b s e n c e 
o f 
a 
s i g n a t u r e 
by 
i t s 
r e p r e s e n t a t i v e . 
A c c o r d i n g l y , 
we 
c o n c l u d e 
t h a t 
t h e 
a r b i t r a t i o n p r o v i s i o n c o n t a i n e d 
i n t h e CMA 
a g r e e m e n t 
i s 
e n f o r c e a b l e . " 
M e r r i l l L y n c h , 
751 
So. 
2d 
a t 
11. 
The 
r e c o r d 
i n d i c a t e s t h a t 
A f l a c r e c e i v e d and a c c e p t e d 
P a r k e r ' s m o n t h l y p r e m i u m p a y m e n t s 
f o r 
t h e 
2009 
p o l i c y ; 
s u c h 
a c t i o n 
i s 
e v i d e n c e 
t h a t 
A f l a c 
c o n s e n t e d t o t h e t e r m s o f t h e 2009 p o l i c y , w h i c h 
i n c o r p o r a t e d 
t h e 
a r b i t r a t i o n 
a g r e e m e n t . 
F u r t h e r , 
t h e 
r e c o r d 
i n d i c a t e s 
t h a t 
P a u l 
S. 
Amos 
I I , 
p r e s i d e n t 
o f 
A f l a c , 
and 
J o e y 
M. 
L o u d e r m i l k , 
s e c r e t a r y 
o f 
A f l a c , 
b o t h 
s i g n e d 
t h e 2009 p o l i c y , 
w h i c h 
i n c o r p o r a t e d 
t h e 
18 
1100227, 1100282 
a r b i t r a t i o n a g r e e m e n t . 
T h e r e f o r e , f o r t h i s r e a s o n as w e l l , 
i t 
i s 
i n c o n s e q u e n t i a l t h a t t h e a r b i t r a t i o n a g r e e m e n t 
i t s e l f was 
n o t 
s i g n e d 
by any A f l a c 
r e p r e s e n t a t i v e 
b e c a u s e 
t h e 2009 
p o l i c y , 
w h i c h 
i n c o r p o r a t e d 
t h e a r b i t r a t i o n 
a g r e e m e n t , was 
s i g n e d by Amos a n d L o u d e r m i l k . 
B a s e d on t h e f o r e g o i n g , we c o n c l u d e t h a t A f l a c a n d H u n t e r 
s a t i s f i e d 
t h e i r 
b u r d e n 
o f 
p r o v i n g 
t h a t 
an 
a r b i t r a t i o n 
a g r e e m e n t 
e x i s t e d 
b e t w e e n t h e p a r t i e s . 
As a 
r e s u l t , t h e 
b u r d e n t h e n s h i f t e d t o P a r k e r t o p r e s e n t e v i d e n c e r e f u t i n g t h e 
e v i d e n c e p r o v i d e d by A f l a c a n d H u n t e r ; P a r k e r d i d 
n o t p r e s e n t 
any 
e v i d e n c e 
r e f u t i n g 
A f l a c ' s 
a n d H u n t e r ' s e v i d e n c e t h a t t h e 
a r b i t r a t i o n a g r e e m e n t 
e x i s t e d . 
N e x t , 
A f l a c 
a n d 
H u n t e r 
a r g u e 
t h a t 
t h e 
a r b i t r a t i o n 
a g r e e m e n t 
" c l e a r l y 
e x p r e s s e s t h e p a r t i e s ' 
i n t e n t 
t h a t 
a l l 
d i s p u t e s 
b e t w e e n 
them 
w i l l 
be 
r e s o l v e d 
b y 
a r b i t r a t i o n . " 
A f l a c ' s 
b r i e f , a t p. 24. I n s u p p o r t o f t h e i r a r g u m e n t , 
A f l a c 
and 
H u n t e r r e l y upon t h e f o l l o w i n g 
p o r t i o n o f t h e a r b i t r a t i o n 
a g r e e m e n t : 
" B o t h I a n d AFLAC 
a g r e e a n d u n d e r s t a n d 
t h a t 
a l l 
d i s p u t e s 
a r i s i n g 
u n d e r l a w , w h e t h e r made by t h e 
c o u r t s o r t h e l e g i s l a t u r e 
o r any o t h e r l a w w h i c h 
i n c l u d e s b u t i s n o t l i m i t e d t o a l l c o n t r a c t , 
t o r t 
and 
t h i r d p a r t y d i s p u t e s , 
w i l l be d e c i d e d b y t h e 
u s e 
o f b i n d i n g 
a r b i t r a t i o n . " 
19 
1100227, 1100282 
P a r k e r 
does 
n o t 
o f f e r 
any 
a r g u m e n t 
i n 
h i s 
b r i e f 
t h a t 
t h e 
a r b i t r a t i o n 
a g r e e m e n t 
was 
n o t 
b r o a d enough 
t o 
i n c l u d e 
h i s 
c l a i m s 
a g a i n s t 
A f l a c 
and 
H u n t e r . 
I n G r e e n T r e e , 
t h i s 
C o u r t 
h e l d : 
"Whether 
an 
a r b i t r a t i o n p r o v i s i o n 
e n c o m p a s s e s 
a 
p a r t y ' s 
c l a i m s 
' i s 
a 
m a t t e r 
o f 
c o n t r a c t 
i n t e r p r e t a t i o n , 
w h i c h 
i n t e r p r e t a t i o n i s g u i d e d 
by 
t h e 
i n t e n t o f t h e p a r t i e s , and w h i c h i n t e n t , a b s e n t 
a m b i g u i t y 
i n t h e 
c l a u s e , 
i s e v i d e n c e d by 
t h e 
p l a i n 
l a n g u a g e o f t h e 
c l a u s e . ' 
A l l i e d - B r u c e T e r m i n i x 
Cos. 
 
v. Dobson, 684 
So. 
2d 
102, 
110 
( A l a . 1 9 9 5 ) . " 
753 
So. 
2d 
a t 
505. 
We 
a g r e e 
w i t h 
A f l a c ' s 
and 
H u n t e r ' s 
a r g u m e n t s t h a t t h e above l a n g u a g e o f t h e a r b i t r a t i o n a g r e e m e n t 
i s 
n o t 
a m b i g u o u s 
and 
t h a t 
i t 
i s 
b r o a d 
enough 
t o 
i n c l u d e 
a r b i t r a t i o n 
o f P a r k e r ' s 
c l a i m s 
a g a i n s t 
them. 
C o n c l u s i o n 
A f l a c 
and 
H u n t e r 
s a t i s f i e d 
t h e i r b u r d e n o f p r o v i n g 
t h a t 
an 
a r b i t r a t i o n a g r e e m e n t 
e x i s t e d 
t h a t 
a p p l i e d 
t o 
P a r k e r ' s 
c l a i m s 
a g a i n s t them. 
B e c a u s e t h e r e was 
no i s s u e as t o w h e t h e r 
t h e 
c o n t r a c t 
c o n t a i n i n g 
t h e 
a r b i t r a t i o n a g r e e m e n t 
a f f e c t e d 
i n t e r s t a t e 
commerce, 
t h e 
b u r d e n 
t h e n 
s h i f t e d t o 
P a r k e r 
t o 
o f f e r 
e v i d e n c e 
r e f u t i n g 
t h e 
e v i d e n c e 
o f f e r e d 
by 
A f l a c 
and 
H u n t e r ; P a r k e r 
o f f e r e d no e v i d e n c e t o r e f u t e t h a t e v i d e n c e 
and 
p r e s e n t s 
no 
p e r s u a s i v e 
a r g u m e n t t h a t A f l a c and 
H u n t e r 
f a i l e d 
20 
1100227, 1100282 
t o 
meet 
t h e i r 
b u r d e n . 
T h e r e f o r e , we 
r e v e r s e t h e 
c i r c u i t 
c o u r t ' s 
j u d g m e n t 
d e n y i n g 
A f l a c ' s 
a n d H u n t e r ' s 
m o t i o n s 
t o 
c o m p e l 
a r b i t r a t i o n , 
a n d we remand t h e c a s e t o t h e 
c i r c u i t 
c o u r t a n d d i r e c t i t 
t o g r a n t t h o s e 
m o t i o n s . 
1100227 -- REVERSED AND REMANDED WITH INSTRUCTIONS. 
1100282 -- REVERSED AND REMANDED WITH INSTRUCTIONS. 
M a l o n e , C . J . , 
a n d S t u a r t , Shaw, a n d W i s e , J J . , c o n c u r . 
21