SECOND DI VI SI ON

A NDREWS, P. J.

, M I LLER and BRA NCH, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a ls .us /r ule s /

Jul y 14, 2015



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 5 A0 55 5 . AAA RESTORATION COM PANY, INC. v . PEEK.

B R A N C H , J u d g e.

AAA Res t o rat i o n Co m

p an y

, In c. (“ AAA”), ap p eal s fro m an o rd er of t he Hen ry

Co u n t y Su p eri o r Co u rt d en y i ng AAA’ s m o t i o n to st ay t h e l aws ui t bro u g h t ag ai n s t i t

b y Fl oren ce Di an n e Peek an d to co m pel arb i t rat i o n of Pee k ’s c l ai m s ag ai n s t AAA.

AAA co n t en d s th at t h e t ri al co urt erred i n fi n d i n g t h at a co rp orat e m i sn o m er as t o t h e

arb i t ral fo ru m des i g nat ed i n th e arb i t rat i o n cl au s e o f t h e p art i es ’ ag reem en t m ean t t h at

t h e arb it ral fo ru m w a s u nav ai l ab l e. AAA fu rt h er arg ues t h at ev en i f t h e p art i es ’

d es i g n at ed arb i t ral fo ru m i s u nav ai l ab l e, t h e t ri al co u rt m i s ap pl i ed o u r deci s i o n in

Mi l l er v. GGNS C At l a n t a

, 3 2 3 Ga. Ap p

. 1 1 4 (7 4 6 SE2 d 6 8 0 ) (2 0 13 ), t o fi n d t h at t h i s

u n av ai l ab i l i t y ren d ered t h e arb i t rat i o n c l a u s e vo i d an d u n en fo rceab l e an d t h at

t h erefo re t h e ap p o i n t m en t o f a s u b s t i t u t e arb i t rat o r p u rs uan t t o OCGA § 9-9 -7 (b ) wasn o t req u i red

. Fo r reas o n s ex p lai n e d m o re fu l l y b el o w, we ag ree t hat t h e t ri al co u rt

e r r ed i n fi n d i n g t h e arb i t rat i o n cl au s e u nen fo rceab l e an d i n refu s i n g t o ap p o i n t a

s u b s t i t u t e arb i t rat o r. Acco rd i n gl y , we rev ers e t h e t ri al co u rt ’ s o rd er an d rem an d t h e

cas e fo r en try of an o rd er req u i ri n g t h e p art i es t o arb i t rat e Peek ’ s cl ai m s ag ai n s t AAA

an d ap p o i n t i n g a s u b st i tu te arb i t rat o r.

Becau s e “ [t ] h e q u es t i o n o f wh et h er a v al i d a n d en fo rceab l e arb i t rat i o n

ag reem en t ex i s t s,

. . . rep res en ts a q u es t io n o f l aw,” we rev i ew de n o vo a t ri al co urt ’ s

o rd er g ran t i n g o r d en y i ng a m o t i o n t o co m p el arb i t rat i o n. Y

a t es v. CACV o

f Co l o r a d

o

,

3 0 3 Ga. Ap p . 4 2 5 (6 93 SE2 d 6 2 9 ) (2 0 1 0 ) (ci tat i o n an d fo o t n ot e o m i t t ed ).

Th e fa c t s r e l ev an t t o t h i s ap p eal are u nd i s p u t ed

. On J u l y 16

, 20 1 3

, a fi re

o ccu rred at Peek ’ s res i den ce i n Newn an

, res u l t i ng i n th e d es t ru ct i o n o f a s i g n i fi can t

p o rt i on o f t h e h o m e. Ap p ro x i m at el y t h ree week s l a t e r

, P eek s i g ned a wri t t en

ag reem en t (“ t h e Ag reem e n t ” ) w i t h AAA fo r t h e d em o l i t i o n o f h er fi re-d am ag ed

res i den ce an d fo r t h e co n s t ru ct i o n of a n ew h o m e o n t h e s am e l o t

. T h e A g reem en t

co n tai n ed an arb i t rat i o n cl au se, i n i t i al ed b y b o t h Peek an d a rep res en t at i v e o f AAA,

wh i ch p ro v i des :

Al l d i s p u t es ari s in g fro m o r rel at ed t o t h is Ag reem en t s h al l b e res o l v ed

b y b in d i n g arb it rat i o n i n acco rd an ce wi t h t h e Co n s t ru ct i on A rb i trat i o n

2As s o ci at i o n (o f A t l an t a) acco rd in g t o t h ei r Co m m erci al ru l es

. Th e l o cal e

o f an y s u ch arb it r a t i o n s h al l b e At l an t a, Fu l t o n Co un t y

, Geo rg i a. T he

d i s p u t e s h al l be h eard an d d eci d ed b y a s i n g l e arb i t rat or s el ect ed

p u rs uan t t o t he ap pl i cab le arb i t rat i o n ru l es

.

A d i sp u t e ev en t ual l y aro s e b et ween t h e part i es an d i n M arch 2 0 1 4, Peek fi l ed

s u i t ag ai n s t AAA as s ert i ng cl ai m s fo r res ci ss i o n, frau d, n eg l ig en t m i s rep res en t at i o n,

v i o l at i o n s o f th e Decep t i v e Trad e Pract i ces T o w ard s t h e E l d erl y Act (OCGA § 1 0 -1

-

8 5 0

, et seq .), vi o l at i on s o f t h e Fai r Bu s in es s Pract i ces A ct (OCGA § 1 0-1 -3 9 3

, et

s eq .), n eg l i g en ce, i n t en t i o n a l i nfl i ct i o n o f em o t i o n al d is t res s, an d co n v ers i o n

. Peek

al s o s o u g h t d ecl arat o ry rel i ef, at t o rn ey fees

, an d p u n i t i v e dam ag es

. In i t s an s wer,

AAA as sert ed t h at t h e t ri al co u rt l ack ed ju ri sd i ct i o n

, as t h e Ag reem en t req u i red t h e

p art i es t o arb i t rat e t h ei r d i s p u t e. AAA al s o fi l ed a m o t io n t o d i s m i ss f o r l a c k o f

ju ri s d i ct i o n t o get h er w i t h a m o t i o n t o s t ay t h e act io n an d co m p el arb i trat i o n

. In h er

res p o n s e, Peek as s ert ed th at t h e arb i t rat i o n cl au s e w a s v o i d an d u n en fo rceab l e

b ecau s e t h e d es i g nat ed arb i t ral fo ru m

, Co n s tru ct i on Arb i t rat i o n As s o ci at i o n (o f

At l an t a), d id n o t ex is t

. AAA t h en fi l ed a rep l y i n w h i ch i t cl ai m ed t h at i t i n t en d ed t h e

Ag reem en t t o d es ig nat e “ Constr u ct i on Arb i trat i o n As s o ci at es

, Lt d

. ,” as t he arb i t rat o r.

In su p p o rt o f t h i s as s ert io n

, A AA s u b m i t t ed t h e affi d av i t o f i t s A s s i s tan t Vi ce

Pres i d en t

, Mi ch ael M cCu n e. M cCu n e av erred t h at “ AAA h as al way s u nd ers t o o d t h e

3[Ag reem en t ’ s arb i t rat i o n cl au s e] t o m an d at e t h e arb i t rat i on o f an y d is p u t es b et ween

t h e p art i es t o be b efo re Co n s t ru ct io n Arb i t rat i on As so ci at es , Lt d .”; an d t h at “ i t was

t h e i n ten t o f AAA t o res o l v e an y d i s pu t es bet ween AAA an d P e e k t h r o u g h

Co n s t ru ct i o n Arb i t rat io n As s o ci at es

, Lt d

. , as th at was t h e p at t e r n a n d b u s i n es s

p ract i ce o f AAA.”

Fo l l owi n g a heari n g o n t h e m o t i o n to co m p el arb i t rat i o n

, th e t ri al co u rt d en i ed

t h e s am e. At th e req u es t o f AAA, an d o v er t h e o b j ect i o n of Peek

, t h e t ri al co u rt

cert ifi ed i t s o rd er fo r i m

m ed i at e rev i ew. T hi s Co u rt t h en g ran t ed AAA’ s ap p l i cat i o n

fo r an i nt erl o cu t ory

ap peal

.

1

. AA A f

i r s t arg u es th at

, as ev i d en ced b y t h e affi d av i t o f A AA’ s Vi ce

Pres i d en t

, t h e arb it rat i o n cl au s e s i m p l y m i s i d en t i fi es Co n s t ru ct i o n A rb i t rat i o n

As s oci at es

, Lt d

., as Co n st ru ct i on Arb i t rat io n A s s o ci at i o n (o f At l an t a). A AA fu rt h er

co n ten d s t h at t h i s Co u rt i s free t o co rrect t h e m i s n om er i n t h e Ag reem en t ’ s arb i t rat i o n

cl au s e an d req u i re t h e p art ies t o arb i t rat e b efo re Co n st ru ct io n Arb i t rat i on As s o ci at es

,

Lt d . W e d i sag ree.

In s u p p o rt o f i t s arg u m en t

, AAA rel i es o n t h e ru l e t h at “ a m ere m i s n o m er o f a

co rp o rat i o n i n a wri t t en i ns t r u m e n t

, or in a l aw, or i n a ju d i ci al p ro ceed i n g i s n ot

m at eri al or v i t al i n i t s co n s eq u en ces

, i f t h e i d en t i t y o f t h e co rp o rat i o n i n t en d ed i s cl ear

4o r can b e as cert ai n ed b y p ro o f.” Pi n s o n v. Ha r t s f i el d In t l

. Co mmer ce Cen t er

, 1 9 1 Ga.

Ap p

. 4 5 9, 4 6 1 (3 8 2 SE2 d 13 6 ) (1 9 8 9 ) (ci t at i o n

, pu n ct u at i o n

, an d em ph as i s o m i t t ed ).

Ap p l y in g t hi s ru l e, we h av e h el d t h at a co rp o rat e m i sn o m er i n a deed t o s ecu re d eb t

o r a d eed t ran s ferri n g t i t l e t o real p ro p ert y wi l l n o t i n v al id at e t h e d eed or o t h erwi s e

t ai n t t h e ch ai n o f t i t l e. See Da r li n g In t l

. v. Ca r t er

, 29 4 G a. 4 5 5

, 4 6 1 (1 ) (b ), n. 3 (7 5 4

SE2 d 3 4 7 ) (2 0 1 4) (ch ai n o f t i t l e s h o wi n g t h e gran t o r’ s n am e as i n cl u d i n g t h e wo rd

“ So u t h eas t ” rat her t h an “ So u th eas t ern ” d i d n o t m ean t h at t r a n s f er o f l an d fro m

So u t heas t ern M ai n t en an ce an d Co n s t ru ct i o n

, In c., was in v al i d ); Deu t s ch e Ba n k Na t

.

Tr u st Co

. v. JP Mo r

g a n Ch a s e Ba n k, N.A.

, 3 0 7 Ga. Ap p. 30 7

, 3 1 0 (1 ) (a) (7 0 4 SE2 d

8 2 3 ) (2 0 1 0 ) (“ [i ] t can n o t b e s ai d t h at t h e m ere p l acem en t o f an ad d i t i o n al s p ace i n t h e

co rp o rat e n am e (i .e., ‘ In d y M ac’ v ers u s ‘ In d y M ac’ ) m ad e t h e id en t i t y o f t h e

co rp o rat i o n u n cl ear” an d t h u s “ t h e m is n o m er di d n o t ren der t h e Wa r r an t y Deed

i rreg ul ar o n i t s face”). Si m i larl y

, wh ere a co rp o rat i o n is a p art y t o a co n t ract

, a

co rp o rat e m i s n o m er co n t ai n ed i n t he ag reem en t wi l l n ei t h er i n v al i d at e t h e co n t ract

,

d ep ri v e th e m i s n am e d p a r t y o f t h e ab i l i t y t o s u e on th e co n t ract

, n o r p ro t ect t h e

5m i s n am ed p art y fro m b ei n g s u ed fo r b reach o f t h e ag reem en t

. 1 See Jo h n s o n v. Un i f i ed

Res i d en ti a l Dev. Co

. , 2 8 5 Ga. Ap p

. 8 5 2

, 8 5 8 -8 5 9 (5 ) (6 48 SE2 d 1 6 3 ) (2 0 0 7 ) (u s e o f

t h e n am e “ Un i fi ed Res i den t i al

, In c

. , ” i n t he co n t ract s at i s s ue, rat h er t h an “ Un i fi ed

Res id en ti al Dev

. Co

., In c.,” co ns t i t u t es “ a m ere m i s n o m er th at d o es n o t ren d er [t h e

ag reem en t s ] u n en fo rceab l e,” g i v en t h at t h e “ i d en t i t y o f t h e co rp o rat i o n was p ro p erl y

p ro v ed ”); At l an t a In d

o o r Ad ver t i s i ng Co n cep t

s v. W o r l d Cl a s s Fi t n es s

, 2 1 3 Ga. Ap p.

2 9 5 -2 9 6 (1 ) (4 4 4 SE2 d 3 8 5 ) (1 9 9 4) (co rp orat e m i s n o m er i n co n t ract d i d n o t b ar

co rp o rat i o n fro m s u i n g o n t hat co n t ract ); Pi n s o n

, 1 9 1 G a. Ap p

. at 4 6 2 (fact th at l eas e

co n tai n ed a m i s n o m er a s t o co rp o rat e t en an t di d n o t rel i ev e co rp o rat i o n of l i ab i l i t y

t h ereu n d er); Ha wki ns v. Tu r n er

, 1 6 6 Ga. Ap p

. 5 0

, 5 1-5 2 (1 ) (3 0 3 SE2 d 16 4 ) (1 9 8 3 )

(fact t h at co n t ract m i s i den t i fi ed t h e co rp o rat i o n on wh o s e b eh al f th e ag en t ex ecu t ed

t h e a g r e e m e nt d id n o t ren d er t h e ag en t p ers o nal l y l iab l e o n t he co n t ract as a m at t er

o f l aw).

1 In s up p o rt o f i t s arg u m en t th at t h i s Co u rt m ay co rrect A AA ’s m i s t ak e in

d raft in g t h e arb i t rat i o n cl au s e, AAA al so rel i e s o n cas es h o l d i ng t h at a co rp o rat e

m i s n o m er i n a co m

p l ai n t wi l l n o t i n v al i d at e s erv i ce o f p ro ces s

, wh ere s erv i ce was in

fact m ad e o n t h e real part y -d efen d an t

. See Ma t h i s v. Bel l S o u t h Tel eco mmu ni ca t i o n s

, 3 0 1 Ga. Ap p

. 8 8 1

, 8 8 3 (6 9 0 SE2 d 2 1 0 ) (2 0 10 ); Mi ll er v. U. S

. S h el t er Co r

p

. of

D e l a w a r e

, 1 7 9 Ga. Ap p

. 46 9

, 4 7 1 -4 7 2 (2 ) (3 4 7 SE2 d 2 5 1 ) (1 9 8 6 ). W e fi n d t h e s e

cas es t o b e co m

p l et el y i n ap p l i cab l e t o cas es i n v ol vi n g an al l eg ed co rp orat e m i s n o m er

i n a co n t ract

, as t h ei r ho l d i n g s rel y o n a p art y ’ s s t at u t o ry ri g ht to am en d h i s p l ead i n g s

. See OCGA § 9 -1 0-1 32 ; OCGA § 9 -1 1 -1 5 (a).

6No t ab l y

, i n each o f t h es e cas es

, th e co rp o rat e en t i t y th at h ad been m i s i d en t i fi ed

was a p art y t o t h e t ran s act i o n wh i ch g av e ri s e to th e l i t i g at i o n

, as wel l as bei n g a p art y

t o t h e l aws ui t i t s el f. Th u s

, i n each cas e t h e ev i d en ce was cl ear as t o wh i ch co rp o rat e

en t i t y t h e p art i es t o t h e t ran s act i o n h ad i n t en d ed t o n am e i n t he co n t ract o r d eed

. An d

t h e ev i d en ce al s o s h o wed t hat t h e m i s n om er h ad res u lt ed fro m a m ut u a l m i s t ak e o f

t h e part i es t o t h e u n d erl y i n g t ran s act i o n – i .e., t h at d es p i t e t h e i n t en t o f b ot h p art i es

,

t h e co n t ract o r d eed h ad m i sn am ed a co rp orat e en t i ty

. Su ch ev id en ce o f t h e p art i es ’

i n t en t i s n o t p res en t i n t hi s cas e.

Th e co rp o r a te e ntity t h at was al l eg ed l y m i s i d en t i fi ed (Co n s t ru ct i o n A rb i t rat i o n

As s oci at e s

, L t d .) wa s n o t a p art y t o t h e u n d erl y i n g Ag reem en t an d is n o t a p art y to

t h i s d i s p u t e. Ad d it i o n al l y

, t h ere i s n o ev i d en ce t h at Peek k n ew o f Co ns t ru ct i o n

Arb it rat io n As s o ci at es

, Lt d

. , o r i n ten d ed t o d es i gn at e t h at en t i t y

, rat h er t h an

Co n s t ru ct i o n Arb i t rat i o n As s o ci at i on (o f At l an t a), as th e pa r tie s’ a r bitr a l f or um

. Th u s

,

we can no t co ncl u d e t h at al l p art i es t o t h e t ran s act io n i n t en d ed t h e arb i t rat io n cl au s e

t o n am e Co n s t ru ct i o n Arb i t rat i o n As s oci at es , Lt d ., as t h e arb i t ral fo ru m

.

Pu t an o th er way

, th e rel i ef s o u g h t b y A AA i s n o t t h e co rrect io n o f a co rp o rat e

m i s n o m er k n o wn t o al l part i es t o t h e A g reem en t

. In s t ead

, AAA i s s eek i n g

refo rm at i o n o f t h e ag reem en t t o h av e t h e nam e “ Co n s t ru ct i o n Arb i t rat i on As s o ci at es

,

7Lt d .” s ub s ti t u t ed fo r th e n am e “ Co n s t ru ct i on Arb i t rat i o n As s o ci at i o n (o f At l an t a).”

To b e en t i t led t o refo rm at i o n o f a co n t ract b as ed u po n a m i s tak e, h o wev er, t h e p art y

s eek i n g t h at refo rm at i o n m u s t s h o w b y “ ‘ cl ear, un eq u i v o cal an d d eci si v e’ ” ev i d en ce

t h at t h e m i s t ak e w as m

ut u al

, rat h er t h an u n i lat eral

. See MAPEI Co r p

. v. P ro s s er

, 3 2 8

Ga. Ap p

. 8 1

, 8 5 (3 ) (7 6 1 SE2 d 5 0 0 ) (2 0 1 4 ), q u o t i n g P r i n c e v

. Fr i ed ma n

, 2 0 2 Ga.

1 3 6

, 1 3 8 (1 ) (4 2 SE2 d 4 34 ) (1 9 4 7 ). See al s o Cu r ry v. Cu rr y

, 2 6 7 Ga. 6 6

, 6 7 (1 ) (4 7 3

SE2 d 7 6 0 ) (1 99 6 ) ( a p art y m ay s eek refo rm at io n of a wri t t en co n t ract “ ‘ wh ere by

m i s t ak e o f t h e s cri v en er an d b y o v ers i g h t o f t h e p art i es

, th e wri ti n g d o es n o t em b o dy

o r fu ll y ex p res s t h e real co n t ract o f t h e p art i es

. Th e cau s e o f t h e d efect i s i m m at eri al

s o lo n g as t h e m i s t ak e i s co m m o n t o b o t h p art i es t o t he t r a n s a c t i o n

. ’ ”) (fo o t n o t es

o m it t ed ); OCGA § 23 -2 -3 1 (“ [e] q u i t y wi ll n o t refo rm a wri t t e n c o n t r act u n l es s t h e

m i s t ak e i s s h o wn t o b e t h e m i s tak e o f b o t h p art i es ”). Here, t h e ev i d en ce s h o ws o n l y

t h at AAA, as t he d raft er o f t h e Ag reem en t

, m ad e a u n il at eral m i s t ak e wh en i t n am ed

“ Co n s tru ct i o n Arb i t rat i o n As s o ci at i o n (o f At l an ta)” as t h e arb it ra l f o ru m

.

Acco rd in g ly

, we can n ot refo rm t h e c o n t ract t o refl ect t h at t h e p art ies in ten d ed to

d es i g n at e Co n s t ru ct i o n Arb i t r at i o n As so ci at es

, Lt d

., as t h e arb i tral fo ru m

. As

ex p lai n ed i n Di v i s i o n 2

, h o wev er, o u r i n ab i li t y t o refo rm t h e arb i t rat i o n cl au s e d o es

n o t ren d er t h at cl au s e i n v al i d

.

82

. Gi v en t h at t h e arb i tral fo ru m des i g nat ed i n t h e Ag ree m en t (Co ns t ru ct i o n

Arb it rat io n As s oci at i o n (o f At l an t a)) d oes n o t ex i s t

, t h e q u es t i o n i s wh et h er t h e

fai l u re of t h is fo ru m m ean s t h at t h e arb i trat i o n cl au s e i s i m p o s s ib l e t o p erfo rm an d

t h erefo re u n en fo rceab le. AAA arg u es t h at t h e arb i t rat i on cl au s e rem ai n s en fo rceab l e

b ecau s e th e co n t ract i s g o v ern ed b y t h e Geo rg i a Arb i t rat i o n Co d e, OCGA § 9 -9 -1

, et

s eq

., a n d s ect i o n 7 of th at s t at u t e perm i t s t h e t ri al co urt t o ap p o i n t a s ub s t i t u t e

arb i t rat o r. W e ag ree.

Th e Geo rg i a Arb i t rat i o n Co d e (“ GAC”) p ro v i d es t hat t h e t ri al co urt “ s h al l

ap p oi n t o n e o r m o re arb i t rat o rs ” wh ere t h e arb i t rat i on ag reem en t “ d o es n o t p ro v i d e

fo r a m et h o d o f ap p o i n tm en t ” o r wh ere t h e m et h o d fo r ap p o i nt i n g arb it rat o rs s et fo rt h

i n t h e p art i es ’ ag reem en t ei t h er “ fai l s ” o r “ i s n o t fo l l o wed fo r an y reas o n

. ” OCGA §

9 -9 -7 (b ) (1 )

- (3 ). In Mi l l er

, 3 2 3 G a. Ap p

. 11 4

, we ad op t e d t h e “ i n t e gral t erm v s

.

an ci l lary l o g i s t i cal co n cern ” t es t “ fo r det erm in i n g wh et h er an arb i trat i o n ag reem en t

b eco m es u n en fo rceab l e wh ere t h e arb i t ral fo ru m des i g n at ed t h erei n is u n av ai l ab l e fo r

an y re a s o n ” o r wh et her t h e fed eral eq u i v al en t of OCGA § 9 -9 -7 “ al l o w s a co u rt to

n am e a s u b s t i t u t e arb it rat o r.” Id

. at 1 1 9 -1 20 (2 ) (fo o t n o t es o m it t ed ). Al t h o u g h in

9Mi l l er we w ere d eal i ng wi t h s ect i o n 5 of t h e Fed eral Arb i t rat i o n A ct (“ F A A” ), 2 we

fi nd t hi s s am e t es t s h ou l d ap p l y t o cas es g o vern ed b y t h e GAC. Sect i o n 5 of t h e FAA

i s s u b s t an t ial l y si m i l ar t o OCGA § 9 -9 -7 , an d as o u r Su p rem e Co u rt h as ex p l ai n ed

,

“ [b ] ecau se o u r s t at e arb i t rat i o n co d e cl o s el y t rack s fed eral arb i trat i o n l aw, we l o o k

t o fed eral cas es fo r g u id an ce i n c o n s t r u i n g o u r o w n s tat u t es .” Br o o kf i el d Co u n t r

y

Cl u b v. S t

. Ja mes -Br o o kf

i el d, LLC

, 2 8 7 Ga. 4 0 8

, 41 1 -4 1 2 (1 ) (6 9 6 SE2 d 6 6 3 ) (2 0 1 0 )

(ci t at i o n an d p u n c t u at io n o m i t t ed ). M o reo v er, u n d er Geo rg i a l aw, arb i t rat i o n i s a

2 Sect i o n 5 o f t h e FAA p ro v i d es :

If i n t he ag reem en t p ro v i s i o n b e m ad e fo r a m et h o d o f n am i n g o r

ap p o i n t i n g an arb it rat o r o r arb i t r a t o rs o r an u m p i re, s u ch m et h o d sh al l

b e fo l lo wed ; b u t if n o m et h o d b e p ro v i d ed t herei n

, o r i f a m et h o d be

p ro v i d ed an d an y p art y t h eret o s h al l fai l to av ai l h i m s el f o f s u ch m et h o d

,

o r i f fo r an y o t h er reas o n t h ere s h al l b e a lap s e i n t he n am in g o f a n

arb i t rat or o r arb it rat o rs o r u m p i re, o r i n fi l l in g a v acan cy

, t hen u po n th e

a p p l i cat io n o f ei t her p art y t o t he co n tro v ers y t he co u rt s h al l des i g n a t e

an d a p p o i n t an arb i trat or o r arb i trat o rs or um p i re, as t h e cas e m ay

req u ire, wh o s h al l act u n d er t h e s ai d ag reem en t wi t h t he s am e fo rce an d

effect as i f he or t h ey had b een s p eci fi cal l y nam ed t h erei n ; an d un l es s

o t h erwi se p ro vi ded i n t h e ag reem en t t h e arb i trat i o n s h al l b e b y a s i n gl e

arb i t rat or.

9 USC § 5

.

10m at t er o f co n t ract

, an d t h erefo re an arb i t rat i o n cl au s e i s s u b ject t o th e o rd i n ary ru l es

o f co n tract i n t erp ret at i o n

. S o u th Po i n t Ret a i l Pa r t n er s v. No rt h Amer i ca n Pr o

p er ti es

At l a n t a

, Lt d

. , 3 0 4 Ga. Ap p

. 4 1 9

, 4 2 2 (1 ) (6 96 SE2 d 1 36 ) (2 0 10 ). Th e card i n al ru l e o f

c o n t ract co n s t ru ct i on is t o as cert ai n t h e i n t en t o f t he p art i es

, as refl ect ed i n t h e

l an g u ag e o f t h e co n t ract

. Mi l l er

, 3 2 3 G a. Ap p. at 1 1 9 -1 2 0 (2 ). An d as w e ex p l ai n ed

i n Mi ll er , t h e “ i n t eg ral t erm v s

. an ci l l ary l o gi s t i cal co n cern ” t es t “ i s co n s i s t en t wi th

Geo rg i a co n t ract law, i n t h at i t fo cu s es o n an d req u i res a co urt t o g i v e effect t o t h e

i n t en t o f t h e co n t ract in g p art i es

, as ev i d en ced b y t h e co n t ract ’ s l an g u ag e.” Id

.

Acco rd in g ly

, we fi n d t h at t h e i n t eg ral term v s

. an ci l l ary l o g i s t i cal co ncern t es t ap p li es

t o arb i trat i o n ag reem en t s g o v ern ed b y t h e GAC.

Un d er t h i s t es t

, “ wh ere t h e l an g u ag e o f t h e ag reem en t refl ect s t h at t h e ch o i ce

o f arb i t ral fo ru m ‘ i s an i n t eg ral p art o f t h e ag reem en t t o arb i t rat e,’ t h en t h e ag reem en t

wi l l b e co n s i d ered v o i d i f t h e fo ru m i s u n av ai l ab l e.” Mi l l er

, 3 23 Ga. Ap p

. at 1 1 9 (2 ),

q u o t i n g Br o wn v. ITT Co n s u mer Fi n a n ci a l Co r p

. , 21 1 F3 d 1 2 1 7

, 1 2 22 (II) (A) (3 )

(1 1 t h Ci r.2 0 00 ). “ If, o n t h e o th er h an d

, t h e ag reem en t s h o ws t h at t h e s el ect i o n o f a

p art i cu l ar fo ru m was m erel y an ‘ an ci l lary l o g is t i cal co n cern ,’ [OCGA § 9 -9 -7 ] wi l l

a p p l y a n d a s u b s t i t u t e arb i trat or m ay b e nam ed .” Mi l ler

, 3 2 3 Ga. Ap p. at 1 1 9 (2 ).

Th u s, t h e q u es t i o n we m u st d e c i d e i n t h i s cas e i s wh et her t h e arb i trat i o n cl au s e

11refl ect s t h at th e sel ect i o n of Co n s t ru ct i o n Arb i t rat i o n As s o ci at io n (o f At l an t a) as t h e

arb i t ral fo ru m was in t eg ral t o t h e p a r t i e s ’ ag reem en t t o arb i t rat e. “ In ot h er wo rd s

,

d o es th e l an g u ag e o f t h e [a] rb i t r a t i o n [ cl au s e] i nd i cat e th at t h e p art i es in t en d ed to

arb i t rat e t h ei r cl ai m s on l y if [Co n s tru ct i o n Arb i t rat io n As s oci at i on (o f At l an t a)] was

av ai l ab l e t o ad m i n i s t er t h at arb i t rat i o n ? ” Id . at 1 2 0 (2 ).

Bo t h Peek an d t h e t r i al co urt rel y o n o u r ap p l i cat i on o f t h e i n t eg ral t erm v s

.

an ci l lary l o g is t i c a l c o n cern t es t i n Mi l l er t o co n cl u d e t h at t h e des i g n at i on o f t h e

a r b i t r a l fo ru m was an i n t eg ral p art o f t h e arb i t rat i o n cl au s e at is s u e i n th i s cas e.

Sp eci fi cal l y

, ci t in g M

i l l er

, t h e t ri al co u rt fo u n d t h at b ecau s e t h e arb i t rat i on cl au s e at

i s su e p ro v i d es t h at t h e p art i es “ s h al l ” arb i t rat e t h ei r d i s p u tes “ i n acco rd an ce wi t h t h e

Co n s t r u c t i o n A rb i t rat i o n As s o ci at i o n (o f At lan t a) acco rd in g t o t h ei r Co m m erci al

ru l es

, ” t he p art i es “ co n t ract ed t o arb i trat e o nl y befo re Co n s t ru ct i o n A rb i t rat i o n

As s oci at i o n (o f At l an t a)

— an en t i ty t h at d o es n o t ex i s t .” T h us

, t h e t ri al co u rt

co n cl u d ed t h at t h e ap p o i n t m en t o f a s u bs t i t u te arb i t rat o r “ ‘ wo u l d co n s t i t u t e a

wh o l es al e rev i s i o n o f t h e arb it rat i o n cl au s e.’ ” (q u ot i n g Mi ll er

, 3 2 3 Ga. Ap p. at 1 2 4

12(2 )). 3 Th i s reas o n i ng g i v es far t o o b ro ad a read i n g t o M i l ler an d fai l s to ack n o wl ed g e

t h e u n iq u e ci rcu m s t an ces o f t h at cas e — ci rcu m s t an ces wh i ch d o n o t ex i s t h ere.

In Mi l ler

, w e f

o u n d t h at t h e s el ect i o n o f th e arb i tral fo ru m (t h e Nat i o n al

Arb it rat io n Fo ru m

o r “ NAF”), was an i n t eg ral t erm o f t h e arb it rat i o n ag reem en t fo r

s ev eral reas o n s

. Fi rs t

, t h e arb it rat i o n ag reem en t p ro v i d ed “ t hat an y d i s p u t es b et ween

t h e p art i es ‘ s h a l l b e res o l v ed excl u s i vel y th ro u gh bi nd i ng arb it rat i o n ’ co n d u ct ed ‘ in

acco rd an ce wi t h t h e Nat i o n al Arb i trat i o n Fo ru m Co d e of Pro ced u re, wh i ch is h er eb y

i n co r p o ra t ed i nt o t h i s Ag reemen t .’ ” 3 2 3 Ga. A p p

. at 1 2 0 (2 ) (em p h as i s i n o ri g i n al ).

Th e NAF Co d e o f Pro ced u re, i n t u rn

, p ro v i d ed t h at “ o nl y t h e N AF” co u l d ad m i n i s t er

i t s Co d e, i d

. , an d th at i f t h e p a r t i es were u nab l e to arb i t rat e b efo re t h e NAF o r

p u rs u an t t o t h e NA F Co d e (wh i ch co u l d b e ad m i n i s t ered on l y b y t h e NAF), “ t h e

p art i es [were] free t o s eek l eg al rem ed i es

— i.e., t o fi l e a t rad i t i o n al l aws u i t .” Id . at

1 2 2 (2 ). W e co n cl u d ed t h at “ [t ] h e Arb i trat i o n Ag reem en t ’ s u se o f th e m an d at o ry

‘ sh al l ’ an d t he wo rd ‘ ex cl us i vel y ,’ t o g et h er wi th i t s exp r es s i n co r

p o r a t i o n ” o f ru l es

rel eas i n g t h e p art i es fro m t h ei r o b l i g at i on t o arb i t rat e if th e NAF w as n o t av ai l ab l e

3 T h i s q u o t e i s t ak en fro m t h at p art o f ou r o p i n i o n i n Mi l l er t h at ad d res s e d

wh et h er t h e cl au se i n t h e arb i t rat i o n ag reem en t s p eci fy i n g t h e ch o i ce o f arb i t ral fo ru m

co u ld b e s ev ered fro m

t he rem ai n d er o f t h e arb i t rat i o n ag reem en t

.

13d em o n s t rat ed “ t hat t h e p art i es d i d n o t h av e a g en eral ag reem en t t o arb i t rat e; rat h er,

t h ey co n t ract ed t o arb i t rat e o nl y b efo re t h e NAF.” Id

. at 1 2 0 -1 2 1 ( 2 ) (em p h as i s

s u p p li ed ).

Th e ci rcu m s t an ces i n t h i s cas e are m ark ed l y d i fferen t fro m t h o s e i n Mi l l er

. As

an i n it i al m at t er, t h e fo ru m d es i g n at ed b y t h e p art i es i n M i l ler d i d

, i n fact

, ex i s t ; i t was

u n av ai l ab l e b ecau s e t h e NAF h ad “ en t ered i n t o a co n sen t ju d g m en t u n der wh i ch [i t ]

ag reed t h at i t wo u l d n o t ad m in i s ter, p ro ces s

, o r i n an y m an n er part i ci p at e i n an y

co n su m er a rb it rat i o n ” aft er a cert ai n d at e. Id

. at 1 1 6 (p u n ct u at i o n an d fo o t n o t e

o m it t ed ). In t h i s cas e, h owev er, t h e d es i g n at ed fo ru m d i d n ot ex i s t

. Th i s fact

, t o g et h er

wi t h t h e fact t hat n ei t h er p art y n o t i ced t h e m i s t ak e wh en i n i t i al i n g th e arb i t rat i o n

cl au s e, s erv es as ev i d en ce t ha t t h e ch o ice o f arb i t rat o r was m erel y an an ci ll ary

l o g i s t i c a l co n cern o f t h e part i es

. In ot h er wo rd s, t h es e fact s t en d to s h o w t h at t h e

fo ru m n am ed i n t he arb it rat i o n cl au s e was no t i n t eg ral to t h e ag reem en t t o arb i t rat e.

See In et ia n b o r v. Ca s h Ca l l

, In c.

, 7 6 8 F3 d 1 3 4 6

, 1 35 0 (III) (A) (1 1 t h Ci r. 2 01 4 ) (“ [t ] o

d eci d e wh et h er t h e fo ru m sel ect i o n cl au s e i s i n t eg ral

, we m u st co n s i d er h o w

i m p o rt an t th e t erm was to o n e o r b o t h o f t h e p art i es at t h e t i m e t h ey en t ered i n t o t h e

ag reem en t ”) (ci t at i on o m it t ed ).

14M o reo v er, al t h o ug h t h e arb i t rat i o n cl au se at i s s u e d o es em pl o y t h e m an d at o ry

t erm “ s h al l ,” u n li k e Mi l l er

, t h e p art i es h ere d id n ot u s e t h e wo rd “ ex cl u si v el y .” Th u s

,

t h e p artie s ga ve no ind i cat i on t h at t h ey i n t en d ed Co n s t ru ct i o n A rb i t rat i o n As s o ci at i o n

( o f A t l an t a) t o b e t h e o n l y fo ru m i n wh i ch t h ey wo ul d arb i t rat e t h ei r di s p ut es

. T h i s

l ack o f “ ex cl u s i ve i nt en t ,” t ak en t o g et her wi t h th e fact t hat Geo rg i a law p ro vi d es fo r

t h e ap p o i n t m en t o f a s u b s t i t ut e arb i t rat or wh ere a d es i g n at ed fo ru m i s u n av a i l a b l e

,

fu rt her s u p p o rt s t h e co n cl u s i o n t h at t h e s el ect i o n o f an arb i t ral fo ru m was n ot i n t eg ral

t o t h e p art i es ’ ag reem en t to arb i t rat e. See Br o wn

, 2 1 1 F3 d at 12 2 2 (3 ) (s el ect i o n o f

arb i t ral fo ru m n o t an i n t e g r a l p art o f an arb it rat i o n cl au s e w h i ch p ro v id ed t h at an y

d i s p u t e bet ween t h e p art i es “ s h al l b e res o l v ed b y b i n di n g arb i t rat i o n u n d er t h e Co d e

o f Pro ced u re” o f a fo ru m t h at h ad b eco m e d efu n ct by t h e t i m e t h e d i s p u t e aro s e; t h u s

,

Sect i o n 5 o f t h e FAA em p o wered t h e t ri al co u rt t o ap p o i n t a s u b s t i t u t e arb i t rat o r).

F i n al l y

, an d m os t i m

p o rt an t ly

, t h e arb i t rat i o n cl au se at i s s ue d i d n o t

i n co rp o rat e, b y referen ce o r o t h erwi s e, an y l an g u ag e in d i cat i n g t h at i f th e d es i g n at ed

arb i t ral fo ru m was u n a v a i l ab le, t h e p art i es were n o t o b l i g at ed t o arb i t rat e t h ei r

d i s p u t es b u t were i n s t e a d free t o s eek t rad i t io n al l eg al rem ed ies

. G i v en t h e

ci rcu m s t an ces o f t h i s c a se, i ncl u d i n g t h e n o n -ex cl u s i v e l an g u ag e o f t h e arb i t rat i o n

cl au s e an d t h e fact t h at i t n am ed a n o n -ex i s t en t fo r u m

, w e fi n d t h at t h e d es i g n at i o n

15o f t h e arb i t ral fo ru m was m erel y a n a n c i l l a r y co n cern o f t h e part i es ; i t was n o t an

i n t eg ral p art o f t he p art i es ’ ag reem en t t o arb i t rat e an y d i s p u t e t hat aro s e o ut o f t h ei r

Ag reem en t

. See In et ia nb o r

, 7 6 8 F3 d at 1 35 0 (III) (A) (t he d es i gn at i o n o f an arb i t ral

fo ru m i s an in teg ral p art o f an ag reem en t t o arb i t ra t e o n l y w h e re i t ap p ears t h at t h e

s el ect i o n o f th i s fo ru m was “ ‘ as i m p ort an t a co n s i d era t i o n a s t h e ag reem en t to

arb i t rat e it s el f’ ”), q u o t i n g In r e S a l o m o n In c. S

ha r eh o l d er s Der i va t ive Li ti

g a t i o n

, 6 8

F3 d 5 54

, 5 61 (III) (2 d Ci r. 1 9 9 5 ). Acco rd i n g l y

, t h e t ri al co u rt erred i n fi n di n g t h at t h e

arb i t rat i on cl au s e at i ss u e i n t h i s cas e was u n en fo rceab le.

Fo r th e r e a s o n s ex p l ai n ed h erei n

, we fi n d t h at t h e p art i es h av e a b i n d i n g

ag reem en t t o arb i t rat e t h ei r di s p ut es

. Becau s e t h e d es i g n at ed arb i t ral fo ru m i s

u n av ai l ab l e, t h e t ri al co u rt s h al l o n rem an d ex erci se i t s au t h o ri t y u n d er OCGA § 9 -9 -7

(b ) t o ap p o i n t a s u bs t it u t e arb i t rat o r. In s o d o in g

, t h e t ri al co u rt s h al l h on o r t h o s e p art s

o f t h e arb i t rat i o n cl au s e wh i ch req u i re t hat t h e arb i trat i o n b e co nd u ct ed i n “ At l an t a,

Fu l t o n Co u n t y , Geo rg i a,” b y a “ s i n g l e arb i t rat o r.”

Ju d g men t r ever

sed an d ca s e r ema n d

ed wi t h d ir ect io n

. A n d

r ews

, P. J., a n d

Mi l l er , J., co n cu r

.

16