GREY HOLLAND MORRIS
McCORMICK and JAMES
COLEMAN McCORMICK,
Plaintiffs,
v
.
Carteret County
No. 00 CVS 754
BERNETTE ODEN MORRIS,
Defendant.
Younce & Vtipil, P.A., by David E. Vtipil, for plaintiff-
appellant.
Marshall, Williams & Gorham, L.L.P., by William Robert Cherry,
Jr., for unnamed defendant-appellee Government Employees
Insurance Company.
Wallace, Morris & Barwick, P.A., by Edwin M. Braswell, Jr.,
for unnamed defendant-appellee Nationwide Mutual Insurance
Company.
HUDSON, Judge.
Plaintiff Grey Holland Morris McCormick appeals from an order
denying her motion to compel arbitration and stay action. For the
reasons given below, we vacate the order and remand to the trial
court for further proceedings.
According to the complaint, on 4 December 1997, Plaintiff Grey
Holland Morris McCormick was injured in an automobile accident when
the car she was driving, which was owned by her husband, PlaintiffJames Coleman McCormick, collided with a car driven by Defendant
Bernette Oden Morris. On 30 June 2000, plaintiffs filed a
complaint against defendant alleging negligence and seeking damages
covering Grey Holland Morris McCormick's personal injuries,
disability, medical expenses, and pain and suffering, and for loss
of consortium sustained by James Coleman McCormick. Government
Employees Insurance Company (GEICO) and Nationwide Mutual
Insurance Company (Nationwide), unnamed defendants, appeared in
the action pursuant to N.C. Gen. Stat. § 20-279.21 (2001). On 19
December 2000, plaintiffs filed an amended complaint adding a claim
by James Coleman McCormick for the costs of attendant care.
On 4 May 2001, plaintiffs filed a motion to compel arbitration
and stay action. According to the motion, the liability insurance
carrier had tendered the limits of its policy, and plaintiffs were
seeking to recover against GEICO and Nationwide under their
underinsured motorist coverages. The motion states that [e]ach
policy contains a provision wherein Plaintiffs may demand
arbitration if they and the insurance companies cannot agree on the
amount of damages. Plaintiffs have demanded arbitration in writing
through their attorney and the insurance companies have refused to
arbitrate. Both GEICO and Nationwide disputed the existence of an
arbitration agreement applicable to the parties.
On 9 July 2001, after a hearing, the trial court denied
plaintiffs' motion. Plaintiff James Coleman McCormick had
previously filed a voluntary dismissal, and only Plaintiff Grey
Holland Morris McCormick (appellant) appeals from the trialcourt's order.
Arbitration agreements are valid, enforceable, and
irrevocable in this State. N.C. Gen. Stat. § 1-567.2(a) (2001).
On application of a party showing an agreement
described in G.S. 1-567.2; and the opposing
party's refusal to arbitrate, the court shall
order the parties to proceed with arbitration,
but if the opposing party denies the existence
of the agreement to arbitrate, the court shall
proceed summarily to the determination of the
issue so raised and shall order arbitration if
found for the moving party, otherwise, the
application shall be denied.
N.C. Gen. Stat. § 1-567.3(a) (2001). Further, an appeal may be
taken from [a]n order denying an application to compel arbitration
made under G.S. 1-567.3. N.C. Gen. Stat. § 1-567.18(a)(1) (2001).
This Court has held that when a party disputes the existence
of a valid arbitration agreement, section 1-567.3 expressly
requires the trial judge 'to summarily determine whether, as a
matter of law, a valid arbitration agreement exists,' and failure
to comply with this mandate is reversible error. Burke v.
Wilkins, 131 N.C. App. 687, 689, 507 S.E.2d 913, 914 (1998)
(quoting Routh v. Snap-On Tools Corp., 101 N.C. App. 703, 706, 400
S.E.2d 755, 757 (1991)).
Here, neither the order nor the transcript of the hearing on
the motion indicates that the trial court determined whether an
enforceable arbitration agreement existed applicable to these
parties. The contracts are not in the record on appeal, and it
appears from the hearing transcript that the contracts were not
before the trial court. The hearing transcript indicates that
GEICO and Nationwide both disputed whether an arbitration clause,if it existed in the policies at issue, was triggered. Thus, we
hold that the trial court is required by N.C.G.S. § 1-567.3(a) to
summarily determine whether a valid arbitration agreement exists.
Accordingly, we vacate the trial court's order and remand for such
a determination.
Vacated and remanded.
Judges WYNN and CAMPBELL concur.
Report per Rule 30(e).
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