Opinion ID: 1780860
Heading Depth: 3
Heading Rank: 1

Heading: did sanderson farms breach the broiler contract specifically the arbitration provision?

Text: ¶ 18. Sanderson Farms argues that it did not breach the arbitration provision. It argues that its interpretation of the cost splitting portion of the provision is correct. Sanderson Farms asserts that its denial of payment of one-half the fees was not a breach of the arbitration agreement. Roy argues that indeed Sanderson Farms did breach the arbitration provision; and therefore, it is not entitled to its protections. [4] The arbitration provision provided in pertinent part that: The cost of such arbitration will be divided among the parties to the arbitration. Each party will bear the cost of their own expenses and attorney's fees, (emphasis added). The broiler contract does not define cost or expenses. Sanderson Farms, the drafter of the broiler contract, had the opportunity to clarify the meaning of these terms but did not. ¶ 19. When terms in a contract are not defined, we give the words in the document their commonly accepted meaning. Parkerson v. Smith, 817 So.2d 529, 541 (Miss.2002). Cost is defined as among or equivalent paid or charged for something; the outlay or expenditure (as of effort or sacrifice) made to achieve an object; loss or penalty incurred in gaining something; and expenses incurred in litigation. Webster's New Collegiate Dictionary 255 (1979). Also, expense is defined as the act or practice of expending money; the act or process of using up; something expended to secure a benefit or bring about a result. Id. at 399. Under these definitions, the filing and administrative fees charged by the American Arbitration Association are costs which by contract Sanderson Farms agreed to divide equally with Roy. Even applying the legal definitions to these terms leads to the same result. Cost is defined as the amount paid or charged for something; price or expenditure. Black's Law Dictionary 282 (7th ed.2000). Expense is defined as an expenditure of money, time, labor, or resources to accomplish a result. Id. at 473. Administration fees and filing fees are encompassed in the definition of cost for which Sanderson Farms contracted to divide equally among the parties. Additionally, if Sanderson Farms meant cost to include filing fees and administrative fees, then it could have specifically stated that in its contract. Furthermore, any ambiguity as to the definition of cost and expense are to be resolved in favor of Roy, since Sanderson Farms as the contracting party had the duty to make such terms unambiguous. Miss. Transp. Comm'n v. Ronald Adams Contractor, Inc., 753 So.2d 1077, 1085 (Miss.2000) (collecting authorities). ¶ 20. Sanderson Farms argues that what it meant by cost was actual costs of arbitration; specifically the arbitrator's compensation and expenses, reporting service costs, and hearing fees. We have repeatedly stated that our concern is not nearly so much what the parties may have intended as it is what they said, for the words employed are by far the best resource for ascertaining intent and assigning meaning with fairness and accuracy. IP Timberlands Operating Co. v. Denmiss Corp., 726 So.2d 96, 104 (Miss.1998) (quoting Whittington v. Whittington, 608 So.2d 1274, 1278 (Miss.1992); UHS-Qualicare v. Gulf Coast Cmty. Hosp., Inc., 525 So.2d 746, 754 (Miss.1987)). Since we are not concerned with what Sanderson Farms may have meant, but didn't say, we find this argument has no merit. ¶ 21. By refusing to pay one-half of the $2,750 cost which amounted to filing and administrative fees and/or the $8,250 cost of arbitration fees and compensation, Sanderson Farms breached the arbitration provision. Sanderson Farms' breach can be used to support the defense of waiver as will be discussed below.