Car buyer demanded rescission of the purchase transaction but refused to return vehicle. Rather than returning the vehicle to implement the rescission request, buyer then filed suit in circuit court in her home county, not the county in which the dealership has its principal place of business, with a barebones complaint that did not take issue with the arbitration provision contained in the written purchase agreement. In response car dealer triggered the arbitration provision and moved the trial court to compel arbitration. The purchaser did not file a written response to the motion but the trial court still denied the motion in a one sentence order. Dealer appealed under KY’s Arbitration Act and the right to interlocutory appeal of a denial of a motion to compel arbitration. The court of appeals refused to rule on the merits opining that the trial court failed to make findings of fact such that the court could review its ruling that denied the demand for arbitration. The court of appeals further declared that findings of fact and conclusions of law are required in orders denying motions to compel arbitration. Dealer filed a petition for rehearing pointing out that neither KY’s Arbitration Act nor the Civil Rules require findings of fact for this requested relief and in fact the Civil Rules make clear that findings of fact are only required in specific enumerated situations, and a motion to compel arbitration is not one of them. The petition was denied by the Court of Appeals. Dealer filed for discretionary review with the Kentucky Supreme Court. That motion was denied in August 2016 so the case is remanded to the Clay Circuit Court to address the trial court’s failure to explain the ruling denying arbitration.
Arbitration/automobile purchase/KY Arbitration Act/KRS 417/jurisdiction
