ÿWPC2 5# öUN %O 0GUU:œw@Ö4*9 0¶A 0D÷U:; 0Ju 0T¿ 0^ 0hq 0rÙ 0|K 0†Ç 0M 1uÝ 0dR 0@¶ D3ö B) U>F U*„ B)® AQ× Æ( 0Dî 0D2 D/v B¥ DC AMRˆYv~ávÓ_˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLÜÏ(ÈhH  Z 6Times New Roman RegularX('\$¡¡Ô€XåÙXXMXÔ,c½¬AZ‹"Arial Regular ôEõö÷DøUùEúÓ€§aö" 3|x(f(2mì$¤¤Ý ƒ'\!ÝÔ€XØXXXÔÝ  ÝÔ€ôâ½ôXXØÔÓ  Óà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó¿"Arial Regular2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ("ÿÿ$££Ò  ÒÒ  Ò""""'ÿÿdxd d< Œ 9p`(&Times New Roman< Œ 9p`(Arial% Line 7 d*+ ,-Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó..'÷ÿ dxdüÿP Pd((((7Border 1dd* /Cþÿ << Gÿÿ ýÝ ƒ!ÝÔ€&ÔÔ€'ÔÝ  ÝÝ ƒ+"ÝÝ  ÝÔ€'ÔÓ  ÓÔ YYY ÔFILEDÔ€'XÔÌÌò òSeptember€4,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€'ôÔAppellate€Court€Clerkó ó ~Ý ƒ!ÝÔ€&ÔÔ€'ÔÝ  ÝÝ ƒ $ÝÔ€'ôÔÓ  Óà àòòÚ  ÚÚ  ÚóóÝ  ÝRule€10€(Court€of€Appeals).€òòMemorandum€Opinionóó.€„„€(b)€The€Court,€with€the€concurrence€of€allÏjudges€participating€in€the€case,€may€affirm,€reverse€or€modify€the€actions€of€the€trial€court€by€memorandumÏopinion€when€a€formal€opinion€would€have€no€precedential€value.€€When€a€case€is€decided€byÏmemorandum€opinion€it€shall€be€designated€ð ðMEMORANDUM€OPINION,ðð€shall€not€be€published,€and€shallÏnot€be€cited€or€relied€on€for€any€reason€in€a€subsequent€related€case.ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva ÒÝ ƒ!ÝÔ . ÔÔ€&ÔÔ€'ÔÝ  ÝÑ\R AØ'\ÑÑ\R AØ'\ÑÑ7€lóXXdðdÈ7Ñ›Ó  ÓœÞ ÞÌà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€JACKSONÌÌÓ ` ܇X2 ’X ÓMETRO€CONSTRUCTION€CO.,€INC.à à)à àó óFrom€the€Shelby€CountyÏChancery€CourtÌà àà àà àà àà àà àò ò)à àó óat€Memphis,€TennesseeÌà àà àPlaintiff/Appellee,à àà àò ò)Ìà àà àà àà àà àà à)à àó óThe€Honorable€Neal€Small,€ChancellorÌò òvs.ó óà àà àà àà àà àà àò ò)Ìà àà àà àà àà àà à)à àó óShelby€Chancery€No.€105725„1€R.D.Ìò òCOGUN€INDUSTRIES,€INC.,à àà à)à àó óAppeal€No.€02A01„9608„CH„00207ò òÌà àà àà àà àà àà à)Ì\à àà àà àà àà àà à)à àREVERSED€AND€REMANDEDÌà àà àà àà àà àà à)Ìà àà àó óDefendant/Appellant.à àò ò)à àó óC.€Hamilton€JarrettÌÙ€*ÙßR€01/A1-j|¢í` Å `€€@ÿRßà àà àà àà àà àà àò ò)à àó óDavid€A.€HughesÌà àà àà àà àà àà àò ò)à àó óAtlanta,€GeorgiaÌà àà àà àà àà àà àò ò)à àó óAttorneys€for€Defendant/AppellantÌà àà àà àà àà àà àò ò)Ìà àà àà àà àà àà à)à àó óGeorge€D.€McCraryÌà àà àà àà àà àà àò ò)à àó óBartlett,€TennesseeÌà àà àà àà àà àà àò ò)à àó óAttorney€for€Plaintiff/Appellee›Ìòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€œóóÌ›Ìà@ àò òMEMORANDUM€OPINIONó ó× ƒ2 ××  ×Ìòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌÌòòò òóóHIGHERS,€J.óóà àÌó óÌà àÌÓÓà àIn€this€breach€of€contract€case,€Metro€Construction€Company,€Inc.€(ð ðPlaintiffðð)Ïfiled€suit€against€Cogun€Industries,€Inc.€(ð ðDefendantðð)€for€Defendantððs€alleged€failure€toÏpay€Plaintiff€under€the€terms€of€the€contract€between€Plaintiff€and€Defendant.€€The€trialÏcourt€granted€summary€judgment€in€favor€of€Plaintiff€and€denied€Defendantððs€motion€toÏdismiss€or,€alternatively,€to€stay€proceedings€pending€arbitration.€€Defendant€appealsÍthe€judgment€of€the€trial€court€arguing€that€the€trial€court€erred€in€granting€summaryÏjudgment€in€favor€of€Plaintiff€and€in€not€directing€the€case€to€arbitration€pursuant€to€theÏarbitration€clause€in€the€contract.€€For€the€reasons€stated€hereafter,€we€reverse€theÏjudgment€of€the€trial€court€which€granted€summary€judgment€in€favor€of€Plaintiff,Ïremand€for€entry€of€a€stay€order€and€direct€this€case€to€arbitration.ÌÌœà@ àò òFACTSó óÌà àOn€January€28,€1993,€Defendant€entered€into€a€written€contract€with€theÏWhitehaven€United€Pentecostal€Church€(ð ðOwnerðð)€for€the€construction€of€a€$1,493,977Ïchurch€building.€€Ñ7€ 8 XXdðXXdð7ÑOn€February€23,€1993,€Defendant€€subcontracted€a€portion€of€theÏcontract€to€Plaintiff.€Ì€€Ìà àPursuant€€to€Article€8€of€the€contract€between€Plaintiff€and€Defendant€(theÏð ðcontractðð),€Plaintiff€agreed€to€supply€all€labor€and€materials€ð ðnecessary€to€perform€aÏcomplete€finish€carpentry€job€per€the€plans€and€specifications.ðð€€Article€12€of€theÏcontract€provided€that:€ÌÓÓà8 àà8 àFinal€payment€.€.€.€shall€be€made€by€the€[Defendant]€to€theÏ[Plaintiff]€when€the€[Plaintiffððs]€work€is€fully€performed€inÏaccordance€with€the€requirements€of€the€ContractÏDocuments.€.€.€.€If,€for€any€cause€which€is€not€the€fault€of€theÏ[Plaintiff],€a€Certificate€for€Payment€is€not€issued€or€theÏ[Defendant]€does€not€receive€timely€payment€or€does€notÏpay€the€[Plaintiff]€within€three€working€days€after€receipt€ofÏpayment€from€the€Owner,€final€payment€to€the€[Plaintiff]€shallÏbe€made€upon€demand.€€ÌÓÓÌ€à àAccording€to€the€affidavit€of€Joe€Savage€(ð ðSavageðð),€Plaintiffððs€president€andÍprincipal€shareholder,€and€the€affidavit€of€Bill€Young€(ð ðYoungðð),€one€of€PlaintiffððsÏsupervisorððs,€Plaintiffððs€construction€on€the€project€proceeded€in€the€ordinary€courseÏuntil€August€24,€1993,€the€date€Young€approached€Bill€Russell€(ð ðRussellðð),€DefendantððsÏsuperintendent,€requesting€that€Russell€call€the€architect€so€that€the€architect€couldÏinspect€the€material€on€the€job€site€and€confirm€that€the€material€was€appropriate€forÏthe€purpose€intended€before€Plaintiff€completed€any€work.€€€On€August€30,€1993,ÏRussell€advised€Young€that€he€had€met€with€the€architect€and€that€the€architect€hadÏpersonally€inspected€the€plywood€and€had€approved€it.€ÌÌà àRelying€on€Defendantððs€representation,€Plaintiff€installed€the€plywood€onto€theÏexterior€of€the€building.€€Savage€and€Young€further€stated€in€their€affidavits€thatÏDefendant€inspected€Plaintiffððs€work,€approved€Plaintiffððs€application€for€payment€inÏlate€1994€and€paid€Plaintiff€for€its€work,€with€the€exception€of€Plaintiffððs€ten€percentÏretainage€fee,€which€amounted€to€$10,916.€€€ÌÌà àHowever,€according€to€the€affidavits€of€Russell€and€James€Bareiter€(ð ðBareiterðð),ÏDefendantððs€district€manager,€Defendant€denied€confirming€to€Plaintiff€or€to€any€of€itsÏagents€that€the€plywood€materials€supplied,€delivered€and€installed€by€Plaintiff€were€inÏaccordance€with€contract€specifications.€ÌÌà àOn€February€10,€1995,€Plaintiff€received€a€letter€from€Defendant€advising€that,Ïaccording€to€the€architect,€every€piece€of€the€exterior€plywood€was€defective€andÏneeded€to€be€replaced.€ÌÌà àOwner€has€not€paid€Defendant€any€of€the€funds€due€for€the€work€performed€byÏPlaintiff.€€Owner€is€withholding€payment€to€Defendant€based€upon€Ownerððs€contentionÏthat€the€materials€supplied€and€installed€by€Plaintiff€do€not€comply€with€the€contractÏspecifications.€ÌÌà àPlaintiff€filed€the€present€action€seeking€payment€of€its€ten€percent€retainage€feeÏdue€under€the€contract,€which€Defendant€refuses€to€pay.€€€Defendant,€however,€pointsÏour€attention€to€Article€6€of€the€contract€which€provides:ÌÓÓà8 àà8 àò òAny€controversy€or€claim€between€the€[Defendant]Ïand€the€[Plaintiff]€arising€out€of€or€related€to€thisÏSubcontract,€or€the€breach€thereof,€shall€beÏsettled€by€arbitrationó ó,€which€shall€be€conducted€in€theÏsame€manner€and€under€the€same€procedure€as€providedÏin€the€Prime€Contract€with€respect€to€claims€between€theÏOwner€and€the€[Defendant],€except€that€a€decision€by€theÏArchitect€shall€not€be€a€condition€precedent€to€arbitration.€€IfÏthe€Prime€Contract€does€not€provide€for€arbitration€or€fails€toÏspecify€the€manner€and€procedure€for€arbitration,€it€shall€beÏconducted€in€accordance€with€the€Construction€IndustryÏArbitration€Rules€of€the€American€Arbitration€AssociationÏcurrently€in€effect€unless€the€parties€mutually€agreeÏotherwise.€€(Emphasis€added).€€Ìò òÓÓÌà@ àLAW€ó óÌà àThe€three€issues€before€this€Court€are€as€follows:Ìà à1)€Whether€this€suit€should€have€been€dismissed€or€stayed€and€submitted€toÏarbitration€pursuant€to€the€arbitration€clause€in€the€contract;Ìà à2)€Whether€the€trial€court€erred€in€granting€Plaintiffððs€Motion€for€SummaryÏJudgment;€andÌà à3)€Whether€the€ð ðPay€When€Paidðð€clause€in€the€contract€relieves€Defendant€ofÏany€duty€to€pay€Plaintiff€until€Defendant€receives€payment€from€Owner.ÌÌà àTennessee€has€adopted€the€Uniform€Arbitration€Act€(the€ð ðActðð).€€T.C.A.€ðð€29„5„301(1980€&€Supp.€1996).€€The€Act€provides€that€a€ð ðwritten€agreement€to€submit€anyÏexisting€controversy€to€arbitration€or€a€provision€in€a€written€contract€to€submit€toÏarbitration€any€controversy€thereafter€arising€between€the€parties€is€valid,€enforceableÏand€irrevocable€save€upon€such€grounds€as€exist€at€law€or€in€equity€for€the€revocationÏof€any€contract.ðð€€ÌT.C.A.€ðð€29„5„302(1980€&€Supp.€1996).€€The€Act€further€provides€that€upon€applicationÏof€a€party€showing€an€agreement€to€arbitrate€and€the€opposing€partyððs€refusal€toÏarbitrate,€ð ðthe€court€shall€order€the€parties€to€proceed€with€arbitration.ðð€€T.C.A.€ððÏ29„5„303(a)(1980€&€Supp.€1996).€€ÌÌà àPlaintiff€argues€that€this€case€should€not€be€submitted€to€arbitration€becauseÏthere€is€no€contractual€dispute€between€Plaintiff€and€Defendant.€€Plaintiff€contends€thatÏDefendant€admitted€that€the€plywood€installed€by€Plaintiff€met€the€contractÏspecifications€and€that€the€architect€approved€and€accepted€the€plywood€PlaintiffÏinstalled.€€However,€according€to€the€affidavits€of€Russell€and€Bareiter,€DefendantÏdenies€that€it€confirmed€to€Plaintiff€or€to€any€of€its€agents€that€the€plywood€PlaintiffÏinstalled€was€in€accordance€with€contract€specifications.€€€ÌÌà àThe€United€States€Supreme€Court€and€the€Sixth€Circuit€Court€of€Appeals€haveÍstated€that€ð ð[a]rbitration€is€a€matter€of€contract,€and€a€party€cannot€be€required€to€submitÏa€dispute€to€arbitration€unless€it€has€agreed€to€do€so.ðð€€òòInternational€Bhd.€of€Teamsters,ÏChauffeurs,€Warehousemen€&€Helpers€of€America€v.€Pepsi„Cola€Gen.€Bottlers,€Inc.óó,Ï958€F.2d€1331,€1333€(6th€Cir.€1992)(citing€òòAT€&€T€Technologies,€Inc.€v.ÏCommunications€Workers€of€Americaóó,€475€U.S.€643,€648€(1986)).€€Where€the€contractÏbetween€the€parties€contains€an€arbitration€clause,€the€court€should€apply€aÏpresumption€of€arbitrability,€resolve€any€doubts€in€favor€of€arbitration,€and€should€notÏdeny€an€order€to€arbitrate€ð ðunless€it€may€be€said€with€positive€assurance€that€theÏarbitration€clause€is€not€susceptible€of€an€interpretation€that€covers€the€assertedÏdispute.ðð€€òòUnited€Steelworkers€of€America€v.€Mead€Corp.óó,€21€F.3d€128,€131€(6th€Cir.Ï1994)(citing€òòAT€&€T€Technologiesóó€,€475€U.S.€at€650).€€In€determining€whether€theÏparties€have€agreed€to€submit€a€dispute€to€arbitration,€the€court€may€not€consider€theÏpotential€merits€of€the€underlying€claims€even€if€the€claims€appear€to€the€court€to€beÏfrivolous.€€òòInternational€Bhd.€of€Teamstersóó,€958€F.2d€at€1333€(citing€òòAT€&€TÏTechnologiesóó€,€475€U.S.€at€649„50).€€òòSee€alsoóó€òòDean€Witter€Reynolds,€Inc.€v.€McCoyóó,Ï853€F.€Supp.€1023,€1028€(E.D.€Tenn.€1994)(stating€that€the€court€is€not€to€consider€theÏpotential€merits€of€defendantsðð€underlying€claims€in€determining€whether€the€dispute€isÏarbitrable).€€Ìà àIn€the€instant€case,€it€is€very€clear€that€the€parties€agreed€to€settle€anyÏcontroversies€or€claims€arising€out€of€or€related€to€the€contract€by€arbitration.€€The€plainÏlanguage€of€Article€6€of€the€contract€reveals€that€any€controversy€or€claim€betweenÏPlaintiff€and€Defendant€arising€out€of€or€related€to€the€contract€shall€be€settled€byÏarbitration.€€Tennesseeððs€adoption€of€the€Act€makes€valid,€enforceable€and€irrevocableÍthe€partiesðð€written€agreement€to€submit€their€controversies€and€claims€under€theÏcontract€to€arbitration.€€Thus,€because€the€contract€contained€a€written€agreement€toÏsettle€all€controversies€and€claims€arising€out€of€or€related€to€the€contract€by€arbitrationÏand€because€Tennesseeððs€adoption€of€the€Act€makes€valid,€enforceable€andÏirrevocable€the€partiesðð€written€agreement€to€arbitrate,€the€trial€court€erred€in€grantingÏsummary€judgment€in€favor€of€Plaintiff.€€We,€therefore,€reverse€the€judgment€of€the€trialÏcourt€which€granted€summary€judgment€in€favor€of€Plaintiff,€remand€for€entry€of€a€stayÏorder€and€direct€this€case€to€arbitration.ÌÌà àBecause€of€our€disposition€of€the€foregoing€issues,€the€remaining€issue€raisedÏon€appeal€is€rendered€moot.ÌÌà àThe›€judgment€of€the€trial€court€is€hereby€reversed,€remanded€for€entry€of€a€stay€œÌÌÌorder›€and€directed€to€arbitration.€€Costs€on€appeal€are€taxed€to€Appellee€for€whichÏexecution€may€issue€if€necessary.ÌÌÓÓà àà àà àà àà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ïóóà àà àà àà àà àà àà àà àœ›œà àHIGHERS,›€J.ÌÌÌÌCONCUR:ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌCRAWFORD,€P.J.,€W.S.ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌLILLARD,€J.