Opinion ID: 1601400
Heading Depth: 3
Heading Rank: 2

Heading: The plain and unambiguous language of the agreement requires arbitration of the diligent-enforcement dispute

Text: This Court's conclusion that the arbitration provision in the agreement encompasses the diligent-enforcement dispute is further reinforced by the parenthetical clause that enumerates a list of arbitrable disputes. Arbitrable disputes are described as including, without limitation, any dispute concerning the operation or application of any of the adjustments, reductions, offsets, carry-forwards and allocations described in subsection IX(j) or subsection XI(i). The use of the phrase including, without limitation, indicates that the disputes listed are illustrative only and do not constitute an exhaustive list of arbitrable disputes. See In re Mark Anthony Constr., Inc., 886 F.2d 1101, 1106 (9th Cir.1989) (In construing a statute, the use of a form of the word `include' is significant, and generally thought to imply that terms listed immediately afterwards are an inexhaustive list of examples, rather than a bounded set of applicable items.). In construing a contract, this Court is guided by the principle that `[t]he intention of the parties controls ... and the intention of the parties is to be derived from the contract itself, where the language is plain and unambiguous.' Dunes of GP, L.L.C. v. Bradford, 966 So.2d 924, 928 (Ala.2007) (quoting Loerch v. National Bank of Commerce of Birmingham, 624 So.2d 552, 553 (Ala.1993)). Subsection IX(j), which is included in the list of arbitrable disputes, establishes the calculation method to be employed by the auditor in determining the PMs' annual payment obligations. The sixth clause of § IX(j) specifically states that the [nonparticipating-manufacturer] Adjustment shall be applied to the results of clause `Fifth' pursuant to subsections IX(d)(1) and (d)(2). Subsection IX(d)(1) explains how the auditor shall calculate the nonparticipating-manufacturer adjustment for the original PMs. Subsection IX(d)(2)(A) provides that the [nonparticipating-manufacturer] Adjustment set forth in subsection (d)(1) shall apply to the Allocated Payments of all Settling States, unless a settling state can satisfy the requirements of subsection IX(d)(2)(B), which provides that a settling state's allocated payment will be exempt from the nonparticipating-manufacturer adjustment if the settling state had a Qualifying Statute ... in full force and effect and diligently enforced the provisions of such statute during such entire calendar year. The parenthetical list in the agreement of arbitrable disputes indirectly refers to diligent enforcement as an arbitrable dispute. Thus, applying the plain and unambiguous language of the list of arbitrable disputes contained in the agreement, we conclude that the arbitration provision compels arbitration of the diligent-enforcement issue.