Filed: Mar. 05, 2014
Latest Update: Mar. 02, 2020
Summary: UNPUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT No. 13-1873 THAVIAN FORD, Plaintiff – Appellee, v. BIG DADDY DRAYAGE LLC, Defendant - Appellant. Appeal from the United States District Court for the District of South Carolina, at Beaufort. Solomon Blatt, Jr., Senior District Judge. (9:13-cv-00175-SB) Submitted: January 16, 2014 Decided: March 5, 2014 Before NIEMEYER, SHEDD, and DIAZ, Circuit Judges. Affirmed by unpublished per curiam opinion. Ryan D. Gilsenan, David S. Yandle, W
Summary: UNPUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT No. 13-1873 THAVIAN FORD, Plaintiff – Appellee, v. BIG DADDY DRAYAGE LLC, Defendant - Appellant. Appeal from the United States District Court for the District of South Carolina, at Beaufort. Solomon Blatt, Jr., Senior District Judge. (9:13-cv-00175-SB) Submitted: January 16, 2014 Decided: March 5, 2014 Before NIEMEYER, SHEDD, and DIAZ, Circuit Judges. Affirmed by unpublished per curiam opinion. Ryan D. Gilsenan, David S. Yandle, WO..
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UNPUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
No. 13-1873
THAVIAN FORD,
Plaintiff – Appellee,
v.
BIG DADDY DRAYAGE LLC,
Defendant - Appellant.
Appeal from the United States District Court for the District of
South Carolina, at Beaufort. Solomon Blatt, Jr., Senior
District Judge. (9:13-cv-00175-SB)
Submitted: January 16, 2014 Decided: March 5, 2014
Before NIEMEYER, SHEDD, and DIAZ, Circuit Judges.
Affirmed by unpublished per curiam opinion.
Ryan D. Gilsenan, David S. Yandle, WOMBLE CARLYLE SANDRIDGE &
RICE, PLLC, Charleston, South Carolina, for Appellant. Tom
Johnson, Warren Johnson, LAW OFFICE OF DARRELL THOMAS JOHNSON,
JR., LLC, Hardeeville, South Carolina; Algernon G. Solomons,
III, SPEIGHTS & RUNYAN, Hampton, South Carolina, for Appellee.
Unpublished opinions are not binding precedent in this circuit.
PER CURIAM:
Big Daddy Drayage LLC, (“BDD”) appeals from the
district court’s order denying its motion to dismiss Thavian
Ford’s breach of contract complaint on the basis of a
forum-selection clause in another contract requiring litigation
in New Jersey. BDD argues that the two contracts are related.
We affirm.
Ford was an independent contractor for BDD pursuant
to the terms of a written Independent Contractor Agreement
(“ICA”) that Ford and BDD entered into in September 2008 and
renewed in 2011. 1 The ICA makes no mention of the lease or sale
of a vehicle. The ICA expressly establishes Newark, New Jersey,
as the exclusive forum for resolving any disputes “arising from
or related to this agreement.” In addition, the ICA provides
that the “Agreement contains the entire understanding between
the parties relating to the transaction contemplated by this
Agreement. All prior contemporaneous agreements . . . are
merged in this Agreement and shall be of no further force or
effect.”
1
The parties provide the 2011 renewal but not the original
2008 contract. It is unclear whether the terms of the renewal
contract were similar or identical to the original contract.
Nonetheless, the parties rely exclusively on the 2011 contract.
2
Also in September 2008, Ford and BDD entered into a
Lease to Purchase Agreement, (“LPA”) whereby Ford paid monthly
installments toward the ownership of a tractor supplied by BDD.
In a paragraph entitled “Contractor Status,” the LPA provides
that “[a]t all times during the term of this Agreement, Lessee
agrees to be under contract to [BDD] . . . under the terms if of
an Independent Contract Agreement. If, at any time during the
term of this Agreement, Lessee is not under contract with [BDD],
this Agreement shall terminate immediately.” 2 The LPA does not
contain a forum-selection clause.
In January 2013, Ford filed a class action complaint
against BDD in the District of South Carolina, averring that he
and other drivers had fully paid for their vehicles but BDD
refused to transfer title or refund payments. Ford stated that
BDD sold automobiles in South Carolina. The complaint does not
include allegations regarding the employment practices of BDD,
nor does it mention the ICA.
BDD filed a motion to dismiss and/or to transfer venue
to New Jersey, based upon the forum-selection clause in the ICA.
2
This odd language (“if of” and “Independent Contract
Agreement” instead of “Independent Contractor Agreement”) is
termed a scrivener’s error by Appellant. Appellee, on the other
hand, argues that the language renders the clause “unclear.”
The district court cited this language in determining that the
contract was ambiguous.
3
The district court denied the motion to dismiss, finding that
the forum-selection clause in the 2011 ICA does not apply to
Ford’s claims arising out of the 2008 LPA. The court ruled
that, “at best,” the language is unclear and that any ambiguity
should be construed against the drafter, BDD. The district
court certified the matter for an interlocutory appeal, pursuant
to 28 U.S.C. 1292(b), noting that there was a “substantial
ground for difference of opinion.” BDD then applied for
permission to appeal in this court, which we granted.
A motion to dismiss based on a forum-selection clause
should be treated as a Rule 12(b)(3) motion to dismiss based on
improper venue. Sucampo Pharm., Inc. v. Astellas Pharma, Inc.,
471 F.3d 544, 550 (4th Cir. 2006). We review a district court’s
ruling on such a motion de novo.
Id.
The rules of contract construction are designed to
determine the intent of the parties. Goldston v. State Farm
Mut. Auto. Ins. Co.,
594 S.E.2d 511, 518 (S.C. Ct. App. 2004).
Under South Carolina law, 3 where a contract is clear and
unambiguous, a court should rely on the plain language of the
contract, “interpret[ing] its lawful meaning and the intent of
3
Ford cites South Carolina law without analyzing its
applicability, and BDD cites only to federal case law without
analyzing the choice-of-law issue. We conclude that South
Carolina law, the state where the contract was presumably made
and performed, is applicable.
4
the parties as found within the agreement.” Smith-Cooper v.
Cooper,
543 S.E.2d 271, 274 (S.C. Ct. App. 2001); see also
Jordan v. Sec. Group, Inc.,
428 S.E.2d 705, 707 (S.C. 1993). A
contract is ambiguous if it could be understood in more ways
than one, if its terms are indefinite, or if it could have a
double meaning. Estate of Revis v. Revis,
484 S.E.2d 112, 116
(S.C. Ct. App. 1997). Where a contract is found to be
ambiguous, a court may look outside the four corners of the
document to determine the intent of the parties.
Id.
Ambiguities should be construed against the drafter. See
Wheeler v. Dynamic Eng’g, Inc.,
62 F.3d 634, 638 (4th Cir.
1995).
In their briefs, the parties essentially dispute the
applicability of two cases to the instant proceedings: Sucampo
and Drews Distrib., Inc. v. Silicon Gaming, Inc.,
245 F.3d 347
(4th Cir. 2001). Both of these cases found that two contracts
were related for the purposes of ruling that a clause in one
contract applied to the other. We find the instant case
materially different from both Sucampo and Drews and conclude
that the district court correctly found that the LPA is not
governed by the forum-selection clause in the ICA.
Specifically, unlike the instant case, the contract with the
forum-selection clause in Sucampo was signed before the
agreement at issue--an agreement specifically executed “under”
5
the first. See
Sucampo, 471 F.3d at 546–47. And in Drews, the
contract with the forum-selection clause included a merger
clause specifically excepting the agreement at issue so it would
remain in force.
Drews, 245 F.3d at 348–49.
Here, besides the fact that BDD would only lease
tractors to its own independent contractors, Ford’s ICA and LPA
are entirely separate. Moreover, the LPA does not reference a
specific independent contractor agreement nor state that the LPA
is governed by any such agreement; instead, the LPA merely (and
somewhat ambiguously) states that Ford had to be working under
contract with BDD in order for the LPA to be in effect.
Furthermore, Ford’s ICA--the contract with the forum-selection
clause--does not require or even mention a lease-to-purchase
agreement, and the LPA was not explicitly executed pursuant to
the ICA.
BDD, the drafter of both contracts, did not attempt to
incorporate the LPA into the ICA or except the LPA from the
operation of the ICA’s merger clause. Given that the merger
clause applies to the entirety of the “transaction contemplated
by this Agreement,” the LPA must then be neither contemplated by
nor related to the Agreement. If it were, the merger clause’s
failure to except the LPA would have voided the LPA, and neither
party argues that the LPA was void. Finally, as the district
6
court found, the language referencing a “contract agreement” in
the LPA is ambiguous.
Given the material differences between the instant
case and Sucampo and Drews, and the fact that BDD drafted the
agreements in question, the district court correctly ruled that
the ICA’s forum-selection clause is not applicable to the
current conflict arising out of the LPA. Accordingly, we
affirm. We dispense with oral argument because the facts and
legal contentions are adequately presented in the materials
before the court and argument would not aid the decisional
process.
AFFIRMED
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