COBB, Chief Justice.
This is an appeal from the order of the Jefferson Circuit Court, granting in part and denying in part the motion to compel arbitration filed by customs Performance, Inc. We affirm in part, reverse in part, and remand.
Custom Performance, Inc., a motorcycle-part dealer in Bessemer, also has a service department in which it repairs motorcycles and installs motorcycle parts. According to Johnny Johnson, the president of Custom Performance,
On May 27, 2007, Horace Dawson purchased from Custom Performance two new motorcycle tires. Horace paid Custom Performance to install the motorcycle tires on his motorcycle in its service department. In conjunction with the installation
(Capitalization in original.) In late June 2007, Horace purchased a motorcycle helmet from Custom Performance.
On July 1, 2007, Horace and his wife, Tammie,
Tammie was not present when Horace purchased the motorcycle tires or when he purchased the motorcycle helmet.
On June 19, 2009, Horace filed a complaint in the Jefferson Circuit Court, Bessemer Division, on his own behalf and as administrator of Tammie's estate. Horace's complaint named Custom Performance; HongJin Crown America, Inc., the
On July 31, 2009, Custom Performance filed a motion to dismiss without prejudice and compel arbitration. On September 17, 2009, the trial court granted the motion to compel arbitration with regard to Horace's personal claims against Custom Performance arising out of the sale and installation of the motorcycle tires. The trial court denied the motion to compel arbitration of the remaining claims against Custom Performance, i.e., Horace's personal claims with regard to the motorcycle helmet and all the claims asserted on behalf of Tammie's estate.
On October 2, 2009, Custom Performance appealed from the trial court's order denying the motion to compel arbitration in part. Horace did not cross-appeal.
Edwards v. Costner, 979 So.2d 757, 761 (Ala.2007).
We note that predispute arbitration agreements cannot be specifically enforced under Alabama law. See Ala.Code 1975, § 8-1-41(3) ("The following obligations cannot be specifically enforced: . . . An agreement to submit a controversy to arbitration.. . .").
Birmingham News Co. v. Horn, 901 So.2d 27, 44 (Ala.2004), overruled on other grounds, Hereford v. D.R. Horton, Inc., 13 So.3d 375 (Ala.2009), and Horton Homes, Inc. v. Shaner, 999 So.2d 462 (Ala.2008). Instead, the Federal Arbitration Act ("the FAA"), 9 U.S.C. § 1 et seq., preempts Alabama law and provides for the specific enforcement of "[a] written provision in. . . a contract evidencing a transaction involving commerce." 9 U.S.C. § 2.
It is undisputed that Horace entered into a written arbitration agreement with Custom Performance in conjunction with Custom Performance's agreement to install new tires on Horace's motorcycle. Horace contends, however, that the agreement does not evidence a transaction involving commerce. Therefore, to determine whether the arbitration agreement may be specifically enforced by the courts of this state, we must determine whether the transaction represents a "rare case of a purely intrastate transaction that could not be said to `involve commerce' in any way." Birmingham News, 901 So.2d at 44.
"[T]he term `involving commerce' in the FAA [is] the functional equivalent of the more familiar term `affecting commerce' — words of art that ordinarily signal the broadest permissible exercise of Congress' Commerce Clause power." Citizens Bank v. Alafabco, Inc., 539 U.S. 52, 56, 123 S.Ct. 2037, 156 L.Ed.2d 46 (2003) (quoting Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 273-74, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995)). Congress' Commerce Clause power reaches "transactions (1) that use the channels of interstate commerce, (2) that involve the instrumentalities of interstate commerce, or persons or things in interstate commerce, or (3) that involve general activities having a substantial effect on interstate commerce." McKay Bldg. Co. v. Juliano, 949 So.2d 882, 885 (Ala.2006). "Congress's Commerce Clause power may reach a transaction even if the individual transaction at issue does not have a `substantial effect' on interstate commerce if `in the aggregate the economic activity in question would represent "a general practice . . . subject to federal control."'" Id. (quoting Citizens Bank, 539 U.S. at 56-57, 123 S.Ct. 2037, quoting in turn Mandeville Island Farms, Inc. v. American Crystal Sugar Co., 334 U.S. 219, 236, 68 S.Ct. 996, 92 L.Ed. 1328 (1948)).
We find it unnecessary to consider every specific way in which the arbitration agreement between Custom Performance and Horace can be said to evidence a transaction that "involv[es] commerce," 9 U.S.C. § 2. The economic activity in question — an agreement between a customer and a dealer pursuant to which the dealer would install new tires on the customer's motorcycle using parts, tools, and supplies obtained through interstate commerce — is unquestionably a commercial transaction involving a necessary part of a motorcycle, which is inherently an instrumentality of commerce; the activity bears directly on the safety and efficiency of a major channel of interstate commerce — the interstate highways; and, in the aggregate, installation of motorcycle tires substantially affects interstate commerce. See Wolff Motor Co. v. White, 869 So.2d 1129, 1132 n. 3 (Ala.2003) ("`Instrumentalities of interstate commerce — e.g., cars, trains, airplanes, see [United States v.] Bishop, 66 F.3d [569,] 588 [(3d Cir.1995)] — retain the inherent potential to affect commerce, unlike other objects of regulation. Thus, even if a particular activity involving an
Accordingly, the arbitration agreement between Horace and Custom Performance evidences a transaction that is within the reach of Congress's Commerce Power and the FAA, and it may be specifically enforced in Alabama.
It is undisputed that Horace did not execute an arbitration agreement as part of the June 2007 transaction in which he purchased the motorcycle helmet Tammie was wearing at the time of the accident. However, Custom Performance argues that Horace's claims pertaining to the motorcycle helmet are encompassed within the arbitration agreement Horace executed in May 2007 in conjunction with the installation of the tires on Horace's motorcycle.
A trial court may not order arbitration of the issue of arbitrability except upon "`"clea[r] and unmistakabl[e]" evidence'" that the parties agreed to arbitrate that issue. Commercial Credit Corp. v. Leggett, 744 So.2d 890, 892 (Ala.1999) (quoting First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995)). The record in this case contains such evidence in the clear and unambiguous language of the arbitration agreement itself. Cf. Jim Burke Auto., Inc. v. McGrue, 826 So.2d 122, 132 (Ala.2002) (holding that the plain language of an arbitration agreement stated the parties' intent to arbitrate the question of arbitrability); see also Strickland v. Rahaim, 549 So.2d 58, 60 (Ala.1989) ("In order to ascertain the intention of the parties, the clear and plain meaning of the terms of the contract are to be given effect, and the parties are presumed to have intended what the terms clearly state.").
The arbitration agreement provides:
(Capitalization in original.)
It is undisputed that Horace assented to the agreement containing the language
It is undisputed that Tammie was not a party to the arbitration agreement Horace signed in conjunction with the installation of the motorcycle tires. "`"[A]rbitration is a matter of contract, and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit."'" Central Reserve Life Ins. Co. v. Fox, 869 So.2d 1124, 1127 (Ala.2003) (quoting AT & T Techs., Inc. v. Communications Workers of America, 475 U.S. 643, 648, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986), quoting in turn United Steel-workers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960)). "Generally, `a nonsignatory to an arbitration agreement cannot be forced to arbitrate [his] claims.'" Edward D. Jones & Co. v. Ventura, 907 So.2d 1035, 1042 (Ala.2005) (quoting Cook's Pest Control, Inc. v. Boykin, 807 So.2d 524, 526 (Ala.2001)). However, there are exceptions to this general rule.
A nonsignatory can be bound to an arbitration agreement if "the contracting parties intended, upon execution of the contract, to bestow a direct, as opposed to incidental benefit upon the third party." Dunning v. New England Life Ins. Co., 890 So.2d 92, 97 (Ala.2003). See also Edwards v. Costner 979 So.2d 757, 763 (Ala.2007). "[I]n order for a person to be a third-party beneficiary of a contract, the contracting parties must have intended to bestow benefits on third parties." Locke v. Ozark City Bd. of Educ., 910 So.2d 1247, 1251 (Ala.2005). Custom Performance has presented no evidence indicating that, at the time it and Horace entered into a contract containing an arbitration agreement, they intended to bestow a direct benefit on Tammie. Edwards v. Costner, 979 So.2d at 761 ("Tee [party moving for arbitration] `must "`produce some evidence which tends to establish its claim.'"'" (quoting Wolff Motor Co., 869 So.2d at 1131, quoting in turn Jim Burke Auto., 674 So.2d at 1265, quoting in turn American Freight Sys., Inc. v. Consumer Prods. Assocs. (In re American Freight Sys., Inc.), 164 B.R. 341, 345 (D.Kan. 1994))). Thus, the third-party-beneficiary exception is not applicable to the claims asserted by Tammie's estate.
"A plaintiff cannot simultaneously claim the benefits of a contract and repudiate its burdens and conditions." Southern Energy Homes, Inc. v. Ard, 772 So.2d 1131, 1134 (Ala.2000). Thus, this Court has developed a second exception to the general rule that a nonsignatory cannot be forced to arbitrate. Regardless of
However, as this Court explained in Cook's Pest Control, Inc. v. Boykin, 807 So.2d 524, 526-27 (Ala.2001), to the extent that the nonsignatory's claims do not rely on the existence of the contract containing the arbitration provision, the nonsignatory is not estopped from avoiding arbitration:
(Emphasis added.) Accordingly, to determine whether Tammie's estate is equitably estopped from avoiding the contractual burden of arbitration, we must first consider whether, under the circumstances of this case, any of the legal claims asserted by Tammie's estate are dependent on the existence of the contract that contains the arbitration agreement. Custom Performance argues that Horace, on behalf of Tammie's estate, asserts "claims of breach of warranty, failure to warn, and negligence in connection with the sale and installation of the subject tires," Custom Performance's brief, at 24, and that each of those claims is dependant on the existence of the contract that contains the arbitration agreement. We note, however, that Horace, as administrator of Tammie's estate, does not assert a breach-of-warranty claim in connection with the sale and installation of the tires.
In Infiniti, supra, and Cook's Pest Control, supra, this Court reached seemingly opposite results after analyzing whether, under the particular circumstances of each case, the plaintiffs' specific causes of action in those cases were dependent on the existence of a contract containing an arbitration provision. Custom Performance cites both cases. However, Custom Performance does not offer any analysis of the particular circumstances of this case or any discussion of whether any of the causes of action Tammie's estate may have necessarily rely on the contract that contains the arbitration agreement. In short, Custom Performance's argument is devoid of any meaningful explanation of why Infiniti and Cook's Pest Control require this Court to compel arbitration of the claims asserted by Tammie's estate (cf. Infiniti) or to affirm the denial of the motion to arbitrate those claims (cf. Cook's Pest Control). It is not the function of this Court to construct and address arguments for the parties on this essential point. Cf. Dykes, 652 So.2d at 251 ("We have unequivocally stated that it is not the function of this Court . . . to make and address legal arguments for a party based on undelineated general propositions not supported by sufficient authority or argument." (citing Spradlin v. Spradlin, 601 So.2d 76 (Ala.1992))).
Under the circumstances, we find no basis upon which to hold that Tammie's estate is estopped from avoiding arbitration.
Custom Performance argues that a distinct and separate basis for requiring Tammie's estate to arbitrate its claims is the doctrine of intertwining claims. Under this doctrine, a nonsignatory to an arbitration agreement may compel a signatory to arbitrate claims "where arbitrable and nonarbitrable claims are so closely related that the party to a controversy subject to arbitration is equitably estopped to deny the arbitrability of the related claim." Conseco Fin. Corp. v. Sharman, 828 So.2d 890, 893 (Ala.2001) (citing Cook's Pest Control, Inc. v. Boykin, 807 So.2d 524 (Ala. 2001)); see also Ex parte Tony's Towing, Inc., 825 So.2d 96, 97 (Ala.2002) (explaining the reasons for limiting the doctrine of intertwining claims to use by the nonsignatory in compelling arbitration of a signatory's claims). The doctrine of intertwining claims "is not applicable, however, when a signatory attempts to compel a nonsignatory third party to arbitrate claims it may have against a signatory." Edwards v. Costner, 979 So.2d at 764 (citing Ex parte Tony's Towing, supra) (emphasis added).
In this case, Custom Performance, a signatory to the arbitration agreement, seeks to compel arbitration of the claims asserted by Tammie's estate, when Tammie was a nonsignatory. Under these circumstances, the doctrine of intertwining claims cannot serve as a basis to compel arbitration. See Ex parte Tony's Towing, supra, and Edwards, supra.
We reverse the trial court's order insofar as the trial court did not submit to
AFFIRMED IN PART; REVERSED IN PART; AND REMANDED.
LYONS, WOODALL, STUART, SMITH, BOLIN, PARKER, MURDOCK, and SHAW, JJ., concur.