Opinion ID: 2521518
Heading Depth: 2
Heading Rank: 2

Heading: Did the District Court Err in Refusing to Order Arbitration?

Text: The Agreement contained the following provision: 21. DISPUTE RESOLUTION: In the event of a dispute, disagreement, controversy, or claim arising out of, pursuant to, or in connection with this Agreement, the parties shall attempt to mediate a settlement in good faith prior to initiating arbitration or litigation. If the dispute is not resolved through formal mediation, the parties hereto may submit the matter to binding arbitration through the American Arbitration Association as follows: (a) Within ten (10) days of written notice of one party to the other of a demand for arbitration, each party shall designate, in writing, the name and address of an arbitrator to be a member of a three-person arbitration panel. Within fifteen (15) days of the date upon which two arbitrators have thus been selected such arbitrators shall, by mutual agreement, appoint a third arbitrator to complete such arbitration panel. .... The district court denied Lexington Heights's motion to compel arbitration on the ground that the wording stating that the parties hereto may submit the matter to binding arbitration showed that the provision was permissive, not mandatory. We need not address that issue, however. An agreement that does not comply with the statute of frauds is invalid. IDAHO CODE § 9-505 (1998). The failure to comply with the statute of frauds renders the agreement unenforceable both in an action at law for damages and in a suit in equity for specific performance. Garner v. Bartschi, 139 Idaho 430, 435, 80 P.3d 1031, 1036 (2003); Hemingway v. Gruener, 106 Idaho 422, 679 P.2d 1140 (1984); Hoffman v. S V Co., Inc., 102 Idaho 187, 628 P.2d 218 (1981). The Agreement being unenforceable for noncompliance with the statute of frauds, Lexington Heights cannot enforce that part of the Agreement regarding arbitration.