Opinion ID: 1937959
Heading Depth: 2
Heading Rank: 2

Heading: Contract Involving an Interstate Commercial Transaction

Text: In addition to demonstrating the existence of a contract calling for arbitration, Bill Heard and Berry are required to show `that the contract `is a contract evidencing a transaction involving commerce within the meaning of the Federal Arbitration Act.'' Brown, 895 So.2d at 885 (quoting Citizens Bank v. Alafabco, Inc., 539 U.S. 52, 53, 123 S.Ct. 2037, 156 L.Ed.2d 46 (2003), quoting in turn 9 U.S.C. § 2). Dunlap filled out credit applications as part of the negotiations for obtaining financing to pay for the Durango. Allen's affidavit states that Bill Heard used those applications to obtain Dunlap's credit information from Equifax Services, Inc., a company based in Atlanta, Georgia. Allen's affidavit also states that Bill Heard contacted five different out-of-state corporations in an attempt to obtain financing for Dunlap's purchase of the Durango. Bill Heard also introduced evidence showing that the used Durango Dunlap negotiated to purchase had been bought and sold at auctions in Michigan and Tennessee. Prior cases have held that evidence similar to that introduced here by Bill Heard and Berry was enough to show that a contract involved an interstate commercial transaction. See, e.g., Dan Wachtel Ford, Lincoln, Mercury, Inc. v. Modas, 891 So.2d 287, 292 (Ala.2004); Serra Toyota, Inc. v. Johnson, 876 So.2d 1125 (Ala.2003); Anniston Lincoln Mercury Dodge v. Conner, 720 So.2d 898 (Ala.1998). However, Dunlap argues that the present case is distinguishable from those cases because, she argues, without the sale of the Durango, the arbitration agreement has no application to and no [e]ffect on any transaction involving interstate commerce. The fact that the sale of the Durango was not completed is irrelevant to our inquiry. In the arbitration agreements, Dunlap, Bill Heard, and Berry agreed to arbitrate disputes concerning any of the negotiations leading to the sale. . . or financing of the vehicle. Dunlap does not dispute that she filled out the credit applications as part of the negotiations to obtain financing nor does she dispute that those applications were forwarded to an out-of-state company in order for Bill Heard to obtain her credit information. Because this interstate transaction between Bill Heard and Equifax was undertaken in an effort to determine whether it would be possible for Dunlap to obtain financing to purchase the Durango, the transaction was part of the negotiations leading to the sale or financing of the vehicle. Accordingly, Bill Heard and Berry have met their burden of proving that the agreements involve an interstate commercial transaction. [2]