Supreme Court of Iowa

Wesley Retirement Services, Inc., Appellee v. Hansen Lind Meyer, Inc., Appellant

April 28, 19991999 Iowa Sup. LEXIS 115

Summary

The court affirmed the order compelling arbitration of Wesley's contract claims while leaving its tort claim for litigation. It held that Iowa law plainly excludes tort claims from arbitration absent a separate writing, that an order compelling arbitration is not appealable as of right but could be reviewed interlocutorily in these circumstances, and that HLM did not waive arbitration because Wesley failed to show prejudice. The court also held that arbitration rulings are reviewed for correction of errors at law, while the factual determination of waiver is reviewed for substantial evidence.

Holding

  • Scope of Iowa's tort-claim exception to arbitration. A claim sounding in tort is not subject to a contractual arbitration agreement under Iowa Code section 679A.1(2)(c), even when the tort claim involves a breach of contract or arises from the same facts as an arbitrable contract claim, unless the parties executed a separate writing providing for arbitration of tort claims.
  • Appealability of an order compelling arbitration. An order compelling arbitration is not a final judgment and is not appealable as of right under Iowa law. In this case, however, the court properly treated Wesley's cross-appeal as an application for interlocutory appeal because the arbitration ruling affected a substantial right, could materially affect the final decision, and was most efficiently reviewed together with HLM's appeal from the denial of arbitration.
  • Standard of review for motions to compel arbitration. A district court's ruling on a motion to compel arbitration is reviewed for correction of errors at law, not abuse of discretion, because the governing statute directs the court to order arbitration when the statutory prerequisites are met.
  • Waiver of the contractual right to arbitrate. HLM did not waive its right to arbitrate. Waiver requires conduct inconsistent with arbitration and prejudice to the party asserting waiver, and substantial evidence supported the district court's finding that Wesley suffered no prejudice.

Docket 97-1027

Cited authorities

  • Iowa R.App. P. 14(f)(13)
  • Iowa R.App. P. 1
  • Iowa R.App. P. 1(d)
  • Iowa R.App. P. 2(a)
  • Iowa Rule of Civil Procedure 179(b)
  • Iowa R.App. P. 14(f)(1)
  • Iowa R. Civ. P. 181
  • 9 U.S.C. § 4

Cited by

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