Opinion ID: 77098
Heading Depth: 2
Heading Rank: 2

Heading: Severability of Illegal Provision of Arbitration Clause

Text: 11 It is undisputed that the arbitration clause contained an illegal provision that purported to limit the time in which Jackson could bring claims against Cintas, but the arbitration clause also contained a severability provision. Jackson argues that the illegal provision invalidated the entire arbitration clause. Cintas argues that the agreement provides for severance of the invalid provision, which means that the remainder of the arbitration clause is still enforceable. We agree with Cintas. 12 We are guided by Anders v. Hometown Mortgage Services, Inc., 346 F.3d 1024 (11th Cir.2003), which also involved a severability clause in an arbitration agreement. We held that [w]hether the severability provision is to be given effect is a question of state law, because in placing arbitration agreements on an even footing with all other contracts, the FAA makes general state contract law controlling. Id. at 1032. As we explained in Anders, the decision relied upon by Jackson, Paladino v. Avnet Computer Technologies, Inc., 134 F.3d 1054 (11th Cir.1998), is inapposite because there was no mention in that appeal of severability as a possible remedy. See id.; see also Anders, 346 F.3d at 1031-32. Although Anders involved Alabama law, we must apply Georgia law regarding the enforceability of severability provisions in contracts. 13 Under Georgia law, a contract may be either entire or severable. O.C.G.A. § 13-1-8(a). If a contract is severable, the part of the contract that is valid will not be invalidated by a separate part that is unenforceable. Id. The intent of the parties determines whether a contract is severable. Id. § 13-1-8(b). 14 Under Georgia law, `[t]he parties' intent may be expressed directly, through a severability clause, or indirectly.' Vegesina v. Allied Informatics, Inc., 257 Ga.App. 693, 572 S.E.2d 51, 53 (2002) (citation omitted). A severability clause indicates the intent of the parties where the remainder of the contract can exist without the void portion. Capricorn Sys., Inc. v. Pednekar, 248 Ga.App. 424, 546 S.E.2d 554, 559 (Ga.App.2001); see also Primerica Fin. Servs., Inc. v. Wise, 217 Ga.App. 36, 456 S.E.2d 631, 635 (1995); Circle Appliance Leasing, Inc. v. Appliance Warehouse, Inc., 206 Ga.App. 405, 425 S.E.2d 339, 340 (1992). Because severability clauses are enforceable under Georgia law and the FAA requires that arbitration agreements be treated no less favorably than other contracts under state law, the district court properly applied the severability clause to enforce the remainder of the arbitration agreement. 1