Opinion ID: 874184
Heading Depth: 1
Heading Rank: 6

Heading: Determination of Arbitrability as a Matter of Law

Text: The Wattenbargers argue that the district court failed to properly apply the summary judgment standard to the respondents' motion to dismiss and, as a result, improperly dismissed the matter because the case could not be dismissed as a matter of law. The Wattenbargers contend that they raised several factual questions that must be resolved in their favor and against arbitrability of their claims. The respondents argue that even if the district court was required to convert the motion to dismiss into a motion for summary judgment and failed to do so, that failure did not constitute reversible error because the standard of review is the same. The respondents' motion should have been treated as one for summary judgment. Despite the fact that the respondents captioned their motion as one to dismiss or compel arbitration, the dismissal motion, in essence, is also a motion to compel arbitration. This Court treats mislabeled claims according to their substance in civil cases. Carroll v. MBNA America Bank, 148 Idaho 261, 268, 220 P.3d 1080, 1087 (2009). Accordingly, any relief resulting from the respondents' motion should have been treated as a decision on a motion to compel arbitration. When ruling on a motion to compel arbitration, the district court applies the same standard as if ruling on a motion for summary judgment. See, e.g., Kaneff v. Delaware Title Loans, Inc., 587 F.3d 616, 620 (3d Cir. 2009) (A district court decides a motion to compel arbitration under the same standard it applies to a motion for summary judgment.. . . On appeal, a `question concerning the applicability and scope of an arbitration agreement' is subject to de novo review. (quoting Harris v. Green Tree Fin. Corp., 183 F.3d 173, 176 (3d Cir.1999))); Cox v. Ocean View Hotel Corp., 533 F.3d 1114, 1119 (9th Cir.2008); Tenn. Health Mgm't, Inc. v. Johnson, ___ Ala. ___, 49 So.3d 175, 179 (2010) (A motion to compel arbitration is analogous to a motion for summary judgment.). This is because issues of arbitrability are questions of law. Mason, 145 Idaho at 200, 177 P.3d at 947. As a result, this Court is free to draw its own conclusions from the evidence presented concerning arbitrability. Id. Accordingly, when determining arbitrability, the court may consider all evidence before it and determine whether the controversy is arbitrable as a matter of law. When reviewing the grant of a motion for summary judgment, we apply the same standard used by the district court in ruling on the motion. Van v. Portneuf Med. Ctr., 147 Idaho 552, 556, 212 P.3d 982, 986 (2009). Summary judgment is properly granted when `the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.' Id. (quoting Idaho R. Civ. P. 56(c)). We must construe the record in favor of the nonmoving party, drawing all reasonable inferences in that party's favor. Id. If we find that reasonable minds could differ on conclusions drawn from the evidence presented, the motion must be denied. Id. The burden of demonstrating the absence of a genuine issue of material fact is on the moving party. Id. If the moving party has demonstrated the absence of a question of material fact, the burden shifts to the nonmoving party to demonstrate an issue of material fact that will preclude summary judgment. Idaho R. Civ. P. 56(e); Kiebert v. Goss, 144 Idaho 225, 228, 159 P.3d 862, 865 (2007). The nonmoving party must come forward with evidence, by affidavit or otherwise, that contradicts the evidence submitted by the moving party in order to survive summary judgment. Kiebert, 144 Idaho at 228, 159 P.3d at 865. The district court is not required to search the record for evidence of an issue of material fact; it is the nonmoving party's burden to bring that evidence to the court's attention. Vreeken v. Lockwood, Eng'g, B.V., 148 Idaho 89, 103-04, 218 P.3d 1150, 1164-65 (2009). A mere scintilla of evidence is not enough to create a question of fact that will preclude summary judgment. Callies v. O'Neal, 147 Idaho 841, 846, 216 P.3d 130, 135 (2009). Thus, if the district court found that the respondents met their burden, the Wattenbargers were required to present more than a scintilla of evidence demonstrating the existence of a question of fact that must be resolved in their favor. This standard allows the district court and this Court to determine arbitrability as a matter of law under the summary judgment standard. Consequently, the district court's finding of arbitrability as a matter of law does not constitute reversible error unless the record contains evidence that indicates the agreement to arbitrate is invalid or the claims presented are not within the scope of the arbitration clause. The Wattenbargers have identified two issues that they contend preclude a finding of arbitrability: (1) whether the custodial account agreement produced by the respondents is actually the one referenced in the new account card; and (2) whether the terms of the custodial account agreement are ambiguous, making its interpretation a question of fact.