O.C.G.A. § 9-9-3 (2019)
Effect of arbitration agreement
A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit any controversy thereafter arising to arbitration is enforceable without regard to the justiciable character of the controversy and confers jurisdiction on the courts of the state to enforce it and to enter judgment on an award.
History
Code 1933, § 7-303, enacted by Ga. L. 1978, p. 2270, § 1; Code 1981, § 9-9-82;
Code 1981, § 9-9-3, as redesignated by Ga. L. 1988, p. 903, § 1.
Annotations
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the provisions, decisions under former Code Section 9-9-82 are included in the annotations for this Code section. Federal Arbitration Act controlled confirmation of award. - Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq., rather than Georgia law, controlled confirmation of an arbitration award made pursuant to the FAA; an order confirming an arbitration award was reversed and the case was remanded for reconsideration in light of the FAA. Adage, Inc. v. Bank of Am., N.A., 267 Ga. App. 877, 600 S.E.2d 829, 2004 Ga. App. LEXIS 800 (2004). Right to enforcement of arbitration clause. - In an action by a subcontractor against general contractor based on a contract containing an arbitration clause, where there was an arbitrable dispute, it was error for the trial court to deny the general contractor’s motion to enforce the arbitration clause. Bishop Contracting Co. v. Center Bros., 213 Ga. App. 804, 445 S.E.2d 780, 1994 Ga. App. LEXIS 753 (1994), cert. denied, No. S94C1677, 1994 Ga. LEXIS 1119 (Ga. Oct. 17, 1994). In a dispute over construction of a home in which the homeowners sought rescission, an arbitration clause in the parties’ contract providing that the parties agreed to submit any controversy to arbitration was enforceable without regard to the
controversy’s justiciable character under O.C.G.A. § 9-9-3. D. S. Ameri Constr. Corp. v. Simpson, 271 Ga. App. 825, 611 S.E.2d 103, 2005 Ga. App. LEXIS 186 (2005). Construction company’s claim that a grocery store owner’s representative who signed a contract which contained an agreement to arbitrate lacked the power to sign under the Equal Dignity Rule, pursuant to O.C.G.A. § 10-6-2, as the authority to sign the agreement and the agreement itself, had to be in writing under O.C.G.A. § 9-9-3, lacked merit, as the contract clearly provided that the representative was acting on behalf of the owner, and, further, the company was not the proper party to dispute the agent’s authority under O.C.G.A. § 10-6-2; rather, that statute was for the principal’s use to dispute an agent’s authority to act on the principal’s behalf. Barron Reed Constr. v. 430, LLC, 275 Ga. App. 884, 622 S.E.2d 83, 2005 Ga. App. LEXIS 1131 (2005), cert. denied, No. S06C0441, 2006 Ga. LEXIS 232 (Ga. Mar. 27, 2006). Based on the clear terms of an arbitration clause in a timber harvesting contract between a landowner and a timber harvesting contractor, the trial court did not err in compelling the contractor into arbitration as the contract had not expired, arbitration of a tort claim was not in-
volved, and the language within the contract clearly covered the issues the landowner sought to arbitrate. Pickle v. Rayonier Forest Res., L.P., 282 Ga. App. 295, 638 S.E.2d 344, 2006 Ga. App. LEXIS 1264 (2006), cert. denied, No. S07C0435, 2007 Ga. LEXIS 218 (Ga. Feb. 26, 2007). Trial court erred in refusing to compel arbitration as to all counts of the buyers’ complaint against a seller to recover damages for construction defects in the buyers’ new home because the arbitration clause in the parties’ agreement was broad enough to cover the buyers’ claims for equitable rescission; the buyers did not attack the validity of the agreement to arbitrate but instead argued that the entire contract should be rescinded due to fraud. Order Homes, LLC v. Iverson, 300 Ga. App. 332, 685 S.E.2d 304, 2009 Ga. App. LEXIS 967 (2009). Parties entered into a valid, enforceable agreement to arbitrate the underlying dispute; by executing the Affiliation Resolution, defendant agreed to accept the Discipline - a collection of rules and procedure and organization - which contained a conflict resolution provision. The underlying dispute was a non-doctrinal dispute as it was a property dispute arising from, or related to, defendant’s withdrawal from plaintiff, consequently it was subject to the conflict resolution provision; further, legal constraints external to the parties’ agreement did not foreclose arbitration. General Conf. of the Evangelical Methodist Church v. Evangelical Methodist Church of Dalton, 807 F. Supp. 2d 1291, 2011 U.S. Dist. LEXIS 100450 (N.D. Ga. 2011). Trial court erred by denying a client’s motion to compel arbitration of the claim against a debt settlement corporation for violations of the debt adjusting statutes, O.C.G.A. § 18-5-1 et seq., because the arbitration provision in the debt settlement agreement mandated arbitration of all disputes and claims between the parties related to the agreement and the claim that the corporation violated statutes regulating the business of debt adjusting was connected to the debt settlement agreement. Penso Holdings, Inc. v. Cleveland, 324 Ga. App. 259, 749 S.E.2d 821, 2013 Ga. App. LEXIS 829 (2013). Arbitration could proceed even if other promises unenforceable. - In a
golf course developer’s appeal from an arbitration award, the developer’s argument that a prior arbitration had concluded that the arbitration clause was unenforceable was rejected because the prior arbitration merely found a lack of mutuality of obligation as to other promises and parties; also, the agreement contained a severability clause, allowing the arbitration clause to stand even if other promises were illegal. Perry Golf Course Dev., LLC v. Columbia Residential, LLC, 337 Ga. App. 525, 786 S.E.2d 565, 2016 Ga. App. LEXIS 332 (2016). Binding settlement reached. - Minor’s exemption under O.C.G.A. § 13-5-3 from contractual liability is a personal privilege which others may not assert as a defense; binding settlement agreement was reached between an insurer and a minor injured party even though: (1) a contract of a minor is voidable under O.C.G.A. § 13-3-20(a); (2) judicial approval pursuant to O.C.G.A. § 29-2-16 postdated the settlement agreement; and (3) no guardian had been appointed for the minor at the time the agreement was reached. Grange Mut. Cas. Co. v. Kay, 264 Ga. App. 139, 589 S.E.2d 711, 2003 Ga. App. LEXIS 1422 (2003), cert. denied, No. S04C0557, 2004 Ga. LEXIS 313 (Ga. Mar. 29, 2004). Relationship to materialmen’s lien enforcement. - Appellee was entitled to protect its rights to materialmen’s lien by filing claim of lien and by filing petition to foreclose said lien at same time it pursued its arbitration rights under contract. H.R.H. Prince Ltc. Faisal M. Saud v. Batson-Cook Co., 161 Ga. App. 219, 291 S.E.2d 249, 1982 Ga. App. LEXIS 1824 (1982) (decided under former § 9-9-82). Waiver. - Where a bank filed a multicount counterclaim to a petroleum company’s complaint alleging mismanagement of the company’s account, engaged in extensive discovery, and did not demand arbitration for nine months, it waived its right to demand arbitration, and the trial court erred when it granted the bank’s motion to dismiss the company’s action so the parties could arbitrate their dispute. Griffis v. Branch Banking & Trust Co., 268 Ga. App. 588, 602 S.E.2d 307, 2004 Ga. App. LEXIS 966 (2004).
RESEARCH REFERENCES ALR. Claim of fraud in inducement of contract as subject to compulsory arbitration clause contained in contract, 11 A.L.R.4th 774.
Awarding attorneys’ fees in connection with arbitration, 60 A.L.R.5th 669. Enforcement of arbitration agreement contained in construction contract by or against nonsignatory, 100 A.L.R.5th 481.