Court Opinion

ID: 9626822
Source: CourtListenerOpinion
Date Created: 2023-08-22 08:24:44.689684+00
Date Added: 2024-06-11T18:06:33.900364
License: Public Domain

HOWE, Justice:
(concurring and dissenting).
I concur in that part of the Court’s opinion which holds that we have jurisdiction of this appeal. However, I dissent from that part holding that the trial court erred in interpreting the contract as not requiring arbitration of plaintiffs collection claim.
The majority opinion gives no legal effect whatever to paragraph 10 of the parties’ agreement. I believe that the following principle of contract interpretation found in the Restatement (Second) of Contracts § 203(c) is applicable: “Specific terms and exact terms are given greater weight than general language.” In paragraph 10 of their agreement, the parties specifically provided that in the event of default by the dealer under any credit agreement with Olivetti, the latter may bring legal action for collection of an unpaid account and may avail itself of any remedy, including those contained in the Uniform Commercial Code. The dealer agrees to pay reasonable collection costs and legal expenses, including reasonable attorney fees. These provisions smack of court action, not arbitration.
The trial court and the U.S. District Court for the District of Utah properly interpreted paragraph 10 as not requiring arbitration of any dispute arising out of a credit agreement between the parties. Both courts concluded that the plaintiff’s first, second, and fourth causes of action could be maintained in court. I agree with that conclusion since they appear to arise from the extension of credit by the plaintiff to the defendants. The majority opinion argues that “Docutel has not presented evidence of any credit agreement.” That, of course, is literally true since this case has not proceeded past the pleading stage. No discovery has been conducted. However, a cursory survey of the pleadings indicates that the first, second, and fourth causes of action seek to recover money from the defendants for goods sold and delivered to them by the plaintiff under an extension of credit. This showing certainly is sufficient to get the plaintiff past a dismissal of its suit at this juncture and put the plaintiff to its proof at trial.
The majority in footnote 3 expresses concern that inconsistent results might come from court action and arbitration. That will not occur since the third cause of action, which will be arbitrated, alleges that Dick Brady Systems, Inc. is the alter ego of Richard Brady. If the plaintiff prevails on this third cause of action, Richard Brady will be personally liable for such debts of Dick Brady Systems, Inc. as may be found due and owing by the Court on the other causes of action. This would produce no inconsistent result.
I would affirm the judgment below.