Opinion
Civil Action No. 1:05-cv-3048-GET.
February 2, 2006
ORDER
The above-styled matter is presently before the court on petitioner's motion to compel arbitration [docket no. 1].
Petitioner filed the instant action to compel arbitration on November 30, 2005, seeking a court order compelling respondents to submit to arbitration pursuant to 9 U.S.C. § 4. Petitioner attached a copy of a contract between the parties, under which it seeks arbitration. Although the petition for arbitration included a certificate of service, as of the date of this order, respondents have not filed a response. On January 17, 2006, the clerk entered default as to both respondents, pursuant to motion by petitioner.
Background
Petitioner is a wholesale agent to insurance companies, and acts as a "middle man" between the insurance agent and the insurance company. Respondent Pat Owen is an insurance agent who transacts business through Pat Owen Insurance LLC. On May 16, 2002, respondent and Pat Owen Insurance LLC entered into a Brokerage Agreement, under which Pat Owen would be paid on a commission basis for business submitted and placed with petitioner. Petitioner claims that respondents have failed to remit premium payments to petitioner in the amount billed, $341,918.10. The Brokerage Agreement provides for any disputes to be submitted to arbitration before the American Arbitration Association. Petitioner filed a claim with the AAA in June, and subsequently amended its demand twice so that its demand seeks the full $341,918.10. On or about November 22, 2005, respondents refused to go forward with the arbitration. According to petitioner, respondents have filed a complaint for declaratory judgment in the County Court of Hinds County, Mississippi, seeking a determination of the authenticity of Pat Owen's signature on the Brokerage Agreement.
Discussion
A district court may grant a motion to compel arbitration where the agreement to arbitrate was prima facie valid. See Brown v. Dean Whitter Reynolds, 882 F.2d 481, 483 (11th Cir. 1989), In Brown, the party opposing arbitration challenged whether the contract providing for arbitration was binding on the basis of contract formation, as do the respondents in this action. Id. There, as here, the party opposing arbitration had the opportunity to show the court that the contract was invalid, but did not make any such showing. Id. In affirm ing the district court's order, which granted the motion to compel arbitration because the contract providing for arbitration was prima facie valid, the Eleventh Circuit stated: "[t]he party opposing arbitration bears the initial responsibility of informing the court of the basis for its opposition. If a party fails to show cause why the arbitration should not be compelled, arbitration will be ordered." Brown v. Dean Whitter Reynolds, 882 F.2d 481, 483 (11th Cir. 1989).
Petitioner attached a copy of the Brokerage Agreement to its petition as Exhibit A. The Brokerage Agreement provides, in paragraph N, "a dispute between parties hereto concerning this agreement shall be substituted to binding arbitration. Any arbitration proceedings shall be held in accordance with the rules and guidelines of the American Arbitration Association and conducted in Cartersville, Georgia." A signature purporting to be that of Pat wen appears on the signature line, alongside the signature of petitioner's agent. Therefore, the contract is prima facie valid.
A copy of the petition was mailed to respondent' attorney and respondents were personally served with the summons and return of service from the petition on December 1, 2005. However, respondents have filed no response with this court contesting the authenticity of Pat Owen's signature or explaining any other reason the court should not grant the petition for arbitration pursuant to the Brokerage Agreement. Consequently, respondents have "failed to show cause why arbitration should not be compelled." See id.
Accordingly, petitioner is entitled pursuant to the contract to have disputed issues arbitrated. Petitioner IUI of Georgia's petition for arbitration [docket no. 1] is GRANTED. Respondents are ordered to proceed with arbitration. All other requests for relief by the petitioner are denied at this time.
Summary
Petitioner IUI of Georgia's petition for arbitration [docket no. 1] is GRANTED. Defendants are ordered to proceed with arbitration. All other requests for relief by the petitioner are DENIED at this time.
SO ORDERED.