O'Neal v. Bama Exterminating Company, Inc.
Annotate this CaseThe O'Neals appealed a circuit court order that granted Bama Exterminating Company, Inc.'s motion to compel arbitration. The dispute arose shortly after the O'Neals closed on the purchase of a house. As part of the loan disclosures, Bama Exterminating prepared an inspection report that the house was termite-free. The report did disclose a prior infestation at the house's carport from several years earlier. Mr. O'Neal signed the report right below the arbitration provision. Two weeks after closing, the O'Neals discovered "bugs" in the walls. They called Bama Exterminating who confirmed that the bugs were termites. The O'Neals then sued Bama Exterminating alleging negligence, wantonness and breach of contract. Bama Exterminating answered their complaint with the affirmative defense of the arbitration clause in the inspection report. The parties moved toward trial in the circuit court. When mediation failed, Bama Exterminating moved the court to compel arbitration. The O'Neals argued that the exterminator waived its right to compel arbitration by its participation in the litigation process. The Supreme Court found the exterminator did not waive its right to compel arbitration, and therefore affirmed the circuit court's decision to grant the company's motion.
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