Opinion ID: 2827190
Heading Depth: 2
Heading Rank: 1

Heading: Arbitrator Selection

Text: ¶9. Junker argues that the contract is “nothing more than an agreement to ‘mutually’ agree on essential terms in the future” because the agreement did not provide a method for selecting an arbitrator in the event the parties could not agree. Junker is incorrect. Section 10 of the agreement provided: “The parties acknowledge that this Agreement involves interstate commerce and that this Arbitration Agreement shall be governed by and interpreted under the Federal Arbitration Act, 9 U.S.C. Sections 1-16.” Section 5 of the Federal 3 The trial court relied exclusively on Covenant Health & Rehabilitation of Picayune, LP v. Estate of Moulds, 14 So. 3d 695, 707 (¶ 38) (Miss. 2009) (The Court has held that courts “should not become a party to redrafting or reforming agreements [and] . . . should not be used to reform a contract to select a forum not anticipated by either of the parties.”). 6 Arbitration Act provides a mechanism for appointing an arbitrator if the parties cannot agree: If in the agreement provision be made for a method of naming or appointing an arbitrator or arbitrators or an umpire, such method shall be followed; but if no method be provided therein, or if a method be provided and any party thereto shall fail to avail himself of such method . . . then upon the application of either party to the controversy the court shall designate and appoint an arbitrator or arbitrators or umpire, as the case may require, who shall act under the said agreement with the same force and effect as if he or they had been specifically named therein; and unless otherwise provided in the agreement the arbitration shall be by a single arbitrator. 9 U.S.C.A. § 5. Under Section 5 of the FAA, the court is to appoint an arbitrator in the event the parties cannot agree. The parties’ agreement specifically provided that it involved interstate commerce and was governed by the FAA. ¶10. Although this Court has not previously adopted Section 5 of the FAA, we have “endorsed the undisputed province of the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (FAA), and recognized its clear authority to govern agreements formed in interstate commerce wherein a contractual provision provides for alternative dispute resolution.” Adams Cmty. Care Ctr., LLC v. Reed, 37 So. 3d 1155, 1158 (¶ 6) (Miss. 2010). See also Slater-Moore v. Goeldner, 113 So. 3d 521, 525 (¶ 8) (Miss. 2013) (“The Federal Arbitration Act governs the enforcement of arbitration contracts that evidence a transaction in interstate commerce.”); IP Timberlands Operating Co. v. Denmiss Corp., 726 So. 2d 96, 107 (¶ 45) (Miss. 1998) (“The Arbitration Act, resting on Congress’s authority under the Commerce Clause, creates a body of federal substantive law that is applicable in both state and federal courts.”). We have held that nursing home admissions agreements affect interstate commerce and are governed by the FAA. Adams Cmty. Care Ctr., 37 So. 3d at 1158 (¶ 6); Grenada Living 7 Ctr., LLC v. Coleman, 961 So. 2d 33, 36 (¶ 7) (Miss. 2007). ¶11. While the court may be called upon to appoint an arbitrator if the parties cannot agree, in the instant case, the circuit court was not yet at that juncture. From the record, there is no evidence to suggest that Junker made any good faith attempt to comply with the terms of the arbitration agreement or to “mutually agree” with the Nichols Center on the selection of an arbitrator. Junker asserts only that she “does not agree to arbitrate under any circumstance.” The parties were not seeking the appointment of an arbitrator in the wake of disagreement; rather, the Nichols Center sought to compel Junker to arbitrate the dispute according to the terms of the agreement as written, including the mutual selection of an arbitrator. Without any attempt by the parties to select an arbitrator, it is mere speculation to conclude that no arbitrator will ever be mutually agreeable. And, if the parties reached that point, the court would be called upon to appoint an arbitrator pursuant to Section 5 of the FAA.