Opinion ID: 1786870
Heading Depth: 2
Heading Rank: 2

Heading: Counts Two, Three, and Seven (Alleging Fraud; Conspiracy; and Deceptive Trade Practices)

Text: Count Two alleges fraud in the inducement; Count Three alleges a civil conspiracy. Lynch concedes that his conspiracy claim is derivative of his fraud claim; hence, if Count Two (fraud) is arbitrable, so is Count Three (conspiracy). Lynch contends that Count Two can be read to allege misrepresentations made subsequent to the execution of the agreements in order to induce him to continue with his distribution of newspapers for the News. The balance of the allegations of fraud stated in Count Two relate to fraud in the inducement. Lynch concedes, again with commendable candor, that, pursuant to Old Republic Insurance Co. v. Lanier, 644 So.2d 1258 (Ala.1994) (an agreement for arbitration of claims arising out of a contract requires arbitration of claims of fraud in the inducement), he is required to arbitrate Counts Two and Three if we determine, as we have done, that the portion of the arbitration clause requiring arbitration of all claims and controversies arising out of this contract applies to those counts. Hence, the claims stated in Counts Two and Three are subject to arbitration, and the trial court's order must be reversed insofar as it denies arbitration as to Counts Two and Threeprovided, however, that Lynch still has the right to proceed outside of arbitration to the extent that these counts allege representations separate from and made after the agreements had been entered. Count Seven alleges violations of the Deceptive Trade Practices Act, § 8-19-1 et seq., Ala.Code 1975, although it only incorporates other allegations of the complaint. Because Count Seven merely incorporates allegations stated elsewhere in the complaint, it is also subject to arbitration and the trial court's order must be reversed insofar as it denies arbitration as to Count Sevenprovided, however, that on this count Lynch still has the right to proceed outside of arbitration as to any acts that he alleges violated the Act and that were separate from the making of the agreement and that occurred after the agreements had been entered.