Opinion ID: 1780860
Heading Depth: 3
Heading Rank: 2

Heading: if sanderson farms did in fact breach the arbitration provision, then did it waive its right to arbitration?

Text: ¶ 22. Sanderson Farms argues that it at no time waived its right to arbitrate. It argues that since it did not breach the arbitration provision, it can not be found to have waived its right to arbitration. Roy argues that Sanderson Farms' breach of the arbitration provision supports a finding of waiver. He argues that since Sanderson Farms waived its right to arbitrate, it is not entitled to the provision's protection. ¶ 23. We recognize that there are strong federal policies in favor of arbitration and that waiver is not a favored finding. Russell v. Performance Toyota, Inc., 826 So.2d 719, 724 (Miss.2002) (collecting authorities). However, it is simple contract law that a party may waive the protections of any provision of a contract. [A] party to a contract may by words or conduct waive a right to which he would otherwise have been entitled Scott Addison Constr., Inc. v. Lauderdale County Sch. Sys., 789 So.2d 771, 775 (Miss.2001) (quoting Canizaro v. Mobile Communications Corp., 655 So.2d 25, 29 (Miss.1995) (citations omitted)). [W]aiver may be express or it may be implied when the party actively participates in litigation or acts inconsistently with its rights to proceed with arbitration. Siam Feather & Forest Prods. Co. v. Midwest Feather Co., 503 F.Supp. 239, 242 (S.D.Ohio 1980) (citing American Locomotive Co. v. Gyro Process Co., 185 F.2d 316 (6th Cir.1950), aff'd mem. 663 F.2d 1073 (6th Cir.1981)). See Cornell & Co. v. Barber & Ross Co., 360 F.2d 512, 513 (D.C.Cir.1966); Cox v. Howard Weil, Labouisse, Friedrichs, Inc., 619 So.2d 908, 914 (Miss.1993). [5] [W]aiver may be inferred from the actions and conduct of the parties. Brent Towing Co., Inc. v. Scott Petroleum Corp., 735 So.2d 355, 359 (Miss.1999) (quoting Mariana v. Hennington, 229 Miss. 212, 226, 90 So.2d 356, 362 (1956)). ¶ 24. Sanderson Farms waived its right to arbitration by refusing to pay its one-half of the costs associated with filing and administrative fees and/or the additional charges presented for payment one month before the scheduled arbitration hearing. This refusal amounts to an act inconsistent with the right to arbitrate. By waiving its right to arbitrate, Sanderson Farms has relinquished the right to seek the protections of the arbitration provision in the broiler contract. ¶ 25. Furthermore, the FAA itself provides that a party in default essentially waives his right or is precluded from invoking the arbitration agreement. Section 3 of the FAA provides that a party may compel arbitration and stay trial court proceedings if he is not in default in proceeding with such arbitration. 9 U.S.C. § 3. As discussed above, Sanderson Farms breached the arbitration agreement and is thereby in default. So even under the FAA's own rules, Sanderson Farms is precluded from seeking the protections of the provision.