Court Will Not Compel Arbitration for Claims Specifically Excluded in the Arbitration Clause
The Arkansas Court of Appeals affirmed a denial of a motion to compel arbitration in Hamilton v. Ford Motor Credit Co., No. 06-0838 (5/23/07).
The Hamiltons purchases a Lincoln Navigator from North Point Ford, and the purchase contract was assigned to Ford Motor Credit. The contract contained an arbitration clause that excluded certain claims, including repossession. After the Hamiltons defaulted, Ford filed a replevin action to repossess the vehicle. The Hamiltons moved to compel arbitration, but the trial court denied the request.
The court of appeals affirmed on two grounds. First, the arbitration clause specifically excludes any action to repossess the vehicle. Second, the arbitration clause was mutual because the court determined both parties retained rights that could not be subject to arbitration.
