NYRSTAR TENNESSEE MINES-STRAWBERRY PLAINS, LLC v. MOSSY CREEK MINING, LLC
CourtCourt of Appeals of Tennessee
Date FiledOctober 9, 2026
DocketE2025-00247-COA-R3-CV
JudgeJohn W. McClarty, Judge
StatusPublished
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Full Opinion
10/09/2026
IN THE COURT OF APPEALS OF TENNESSEE
AT KNOXVILLE
February 24, 2026 Session
NYRSTAR TENNESSEE MINES-STRAWBERRY PLAINS, LLC v. MOSSY
CREEK MINING, LLC
Appeal from the Circuit Court for Knox County
No. 3-213-24 Deborah C. Stevens, Judge
___________________________________
No. E2025-00247-COA-R3-CV
___________________________________
The dispute in this case is over the interpretation and meaning of the indemnity provision
in a settlement agreement. The trial court denied the plaintiff’s motion to compel
arbitration. We affirm.
Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court
Affirmed; Case Remanded
JOHN W. MCCLARTY, P.J., E.S., delivered the opinion of the court, in which THOMAS R.
FRIERSON, II, and KRISTI M. DAVIS, JJ., joined.
W. Edward Shipe and Avery C. Lovingfoss, Knoxville, Tennessee, and William M. Katz,
Jr., Dallas, Texas, for the appellant, Nyrstar Tennessee Mines-Strawberry Plains LLC.
W. Kyle Carpenter, Dean T. Howell, and Kaitlin F. Tweel, Knoxville, Tennessee, for the
appellee, Mossy Creek Mining, LLC.
OPINION
I. BACKGROUND
This matter initially arose out of a dispute regarding certain costs at the Young Mine
and Mill (“Young Mine”), a zinc processing facility currently owned by appellant Nyrstar
Tennessee Mines-Strawberry Plains, LLC (“Strawberry Plains”). Appellee Mossy Creek
Mining, LLC (“Mossy Creek”) and Strawberry Plains are parties to a series of agreements
known as the “Young Mine Agreements,” which contain an arbitration provision and
govern Mossy Creek’s use of and operations on property at the Young Mine. Mossy Creek,
engaged in the business of selling limestone, utilizes the tailings (leftover materials from
the processing of the mined ore) stockpiled on the Young Mine property. The Young Mine
Agreements consist of the following contracts:
1. The Young Mine Tailings and Access Easement Agreement, October 24,
2002 (“Original Easement”). Parties to the Original Easement are Mossy
Creek and ASARCO Incorporated (“ASARCO”), a predecessor-in-interest
to Strawberry Plains.
2. The Young Mine Agreement, May 19, 2006 (“Young Mine Agreement”).
Parties to the Young Mine Agreement are Mossy Creek and Glencore Ltd.
(“Glencore”), a predecessor-in-interest to Strawberry Plains.
3. The Amendment to Young Mine Agreement, dated February of 2007.
Parties to the Amendment to Young Mine Agreement are Mossy Creek and
East Tennessee Zinc Company, LLC (“ETZC”), a predecessor-in-interest to
Strawberry Plains.
4. The Supplemental Easement Agreement, June 11, 2007 (“Supplemental
Easement”). Parties to the Supplemental Easement are Mossy Creek, the
Industrial Development Board of Jefferson County, Tennessee (“Jefferson
County”), and ETZC.
5. The Agreement Amending Young Mine Agreement, December 19, 2012
(“Amending Agreement”). Parties to the Amending Agreement are Mossy
Creek, Strawberry Plains, and Jefferson County.
Nyrstar IDB and Nyrstar NV are not parties to any of the agreements.
2002 ORIGINAL EASEMENT
The Original Easement was signed by ASARCO, a New Jersey Corporation, and
Mossy Creek. Entered into in 2002, it was prepared when ASARCO owned the Young
Mine but was not actively mining zinc. The Original Easement provided for Mossy Creek
to have five easements at the Young Mine:
(i): Easement to enter the property and “use the Property for purposes of
removing and selling the Tailings from the Property and for maintaining the
existing Tailings’ impoundment located thereon, including all sediment
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control structures (‘Tailings Easement’).”1
(ii): Easement for use of the roadway and the railroad spur owned by Mossy
Creek.
(iii): Easement for storage of Mossy Creek’s equipment and vehicles used in
the removal of tailings from the Young Mine.
(iv): Easement for Mossy Creek to have signage at the Young Mine.
(v): Easement for Mossy Creek to use the scales and scale house at the Young
Mine.
Pursuant to Section 14(c) of the Original Easement, the parties agreed to resolve disputes
in arbitration:
Any dispute arising out of or relating to this [Original Easement], including
without limitation, the breach, termination or validity thereof . . . will be
settled by binding arbitration pursuant to the Commercial Arbitration Rules
of the AAA,2 as in effect on the date thereof. . . .
2006 YOUNG MINE AGREEMENT
Mossy Creek later entered into an agreement with Glencore, a Swiss company, in
connection with Glencore’s anticipated purchase at auction of the Young Mine from
ASARCO and assumption of ASARCO’s rights and obligations under the Original
Easement. It appeared Glencore and its affiliate ETZC would restart zinc mining. In the
May 2006 Young Mine Agreement, Mossy Creek obtained title to the tailings produced at
the Young Mine “without charge . . . upon deposit onto the Tailings Dam.” The Young
Mine Agreement further confirmed that Mossy Creek would continue “to have the right of
access to, and an easement permitting Mossy Creek to remove tailings currently located in
the Easement Areas,” which included the TSF, to access tailings either stored at or
produced at the Young Mine. The Young Mine Agreement stated that the “Old Tailings”
– those tailings that had been previously stored in the TSF – “are owned by Mossy Creek
and upon deposit, the New Tailings shall immediately become the Property of Mossy
1
The tailings impoundment dam is known as the Tailings Storage Facility or “TSF.” The by-
products can be classified and used as either agricultural lime (“ag lime”), sand, or tailings. The TSF is
designed for the safe and long-term storage of tailings materials, to settle out the tailings, and to decant
clear water off the top of the TSF to be reused in the mill. The TSF is approximately 100 feet tall and 100
acres. The Tennessee Safe Dams Act provides the legal requirements and recognized dam safety criteria
for the tailings and by-product storage facilities.
2
American Arbitration Association.
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Creek; however, Glencore shall have the right to deposit New Tailings in the tailings dam
on top of the Old Tailings.”
2007 SUPPLEMENTAL EASEMENT
After buying the Young Mine and assuming the Original Easement, Glencore
transferred its rights and obligations under the Original Easement to ETZC, a wholly
owned Delaware subsidiary with its principal place of business in Tennessee. The 2007
Supplemental Easement confirmed the parties’ agreement in the Young Mine Agreement:
“The tailings in existence as of November 20, 2001 (the “Old Tailings”) are owned by
Mossy Creek and upon deposit, new tailings (“New Tailings”) shall immediately become
the property of Mossy Creek; however, [ETZC] shall have the right to deposit New Tailings
in the tailings dam on top of the Old Tailings.”
In December 2009, ETZC sold the Young Mine to Strawberry Plains, which
assumed ETZC’s rights and obligations under the Original Easement.
2012 SETTLEMENT AGREEMENT
A confidential Settlement Agreement and Release of Claims (“Settlement
Agreement”) was reached on December 19, 2012, because the parties wished to resolve all
claims asserted or that could have been asserted by Mossy Creek against Strawberry Plains,
Nyrstar IDB, and Nyrstar NV in the following matters:
1) Mossy Creek Mining, LLC v. Glencore Ltd., East Tennessee Zinc Co.,
LLC, Nyrstar IDB, LLC, Nyrstar Tennessee Mines – Strawberry Plains, LLC,
and NV, No. 50 489 T 000 73 12, International Centre for Dispute Resolution
in Chicago (“2012 Arbitration”);
2) Mossy Creek Mining, LLC v. Nyrstar IDB, LLC, Nyrstar Tennessee Mines
– Strawberry Plains, LLC, and Nyrstar NV, No. 3:10-CV-328 (E.D. Tenn.);
and
3) Mossy Creek Mining, LLC v. Nyrstar IDB, LLC, Nyrstar Tennessee Mines
– Strawberry Plains, LLC, and Nyrstar NV, No. 1:11-cv-06938 (N.D. Ill.).
In each of these matters, Mossy Creek claimed that Glencore, ETZC, and Strawberry Plains
contaminated the tailings by depositing rock onto the tailings in the TSF. According to
Mossy Creek, these actions made the tailings economically unusable as a future source of
ag lime or caused added costs of screening and removing the rock from the tailings to
produce ag lime.
In accordance with the terms of the Settlement Agreement, Mossy Creek agreed to
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the following:
***
3. . . . [T]he parties agree as follows:
(a) To amend the Young Mine Agreement . . . so that all of Mossy
Creek’s ownership interests in the limestone tailings in and on the
Young Mine tailings dam are transferred to [Strawberry Plains];
(b) To amend and revoke the easements in the Young Mine
Agreement . . . so that any casement allowing Mossy Creek access
to the tailings dam is terminated. Easements in the Young Mine
Agreement allowing Mossy Creek ingress and egress to the
Young Mine property in order to load lime, rock, or other
products, and to access the scale house, will remain in force
according to the terms of the Young Mine Agreement.
(c) [Strawberry Plains] agrees that neither it nor its successors,
affiliates, or assigns will sell, market, or distribute the limestone
tailings in and on the Young Mine tailings dam as agricultural
lime without the prior written consent of Mossy Creek. . . .
(d) [Strawberry Plains] agrees to indemnify and hold Mossy
Creek harmless from any and all charges, claims, and/or
obligations (including reasonable attorneys’ fees and costs
incurred) arising out of the condition of the tailings dam, the
integrity thereof, any discharge, runoff, or leakage therefrom,
and all claims of whatsoever kind or nature relating to or
arising from [Strawberry Plains’] operation, ownership
and/or maintenance of the tailings dam, with the exception
that [Strawberry Plains] will not indemnify or hold Mossy
Creek harmless for any claims, liabilities, obligations,
promises, agreements, controversies, damages, actions,
causes of action, suits, rights, demands, costs, losses, debts
and expenses awarded to or made by [ETZC] or Glencore . .
. in the 2012 Arbitration or in East Tennessee Zinc Company,
LLC v. Mossy Creek Mining, LLC, Case No. 51 152 00932 08
(AAA, Chicago, IL) (“2008 Arbitration”).
***
6. Except as specifically set forth herein, this Agreement constitutes the
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entire agreement between the parties pertaining to the subject matter of this
Agreement, and shall not be amended except in writing signed by all of the
parties.
7. If any provision of this Agreement is held to be invalid, illegal or
unenforceable, the parties agree that the enforceability of the remaining
portions of this Agreement shall not be affected or impaired thereby. The
Court shall rewrite the invalid, illegal, or unenforceable provision to the
maximum extent permitted by law.
***
9. The Parties agree that this Agreement is made in Tennessee and that
Tennessee law shall govern the validity, construction, interpretation and
enforcement of this Agreement without regard to Tennessee’s conflict of
laws principles. Should a dispute arise between or among the Parties
concerning this Agreement, including, but not limited to, a dispute
involving the interpretation, application, or compliance with any term
or condition of this Agreement, the Parties hereby consent to jurisdiction
over their persons by the state and federal courts of Tennessee. In the
event a Party to this Agreement brings suit to enforce all or any part of
this Agreement, the Parties agree that the prevailing party or parties in
said suit will be entitled to recover their reasonable attorneys’ fees, costs
and expenses in prosecuting or defending such suit.
***
11. The parties each warrant and represent that each respectively has read
and understands this Agreement, has entered into it knowingly and
voluntarily, and is duly authorized to sign this Agreement on its behalf. The
Agreement is the result of negotiations between the parties, and this
Agreement shall be interpreted in accordance with its plain meaning, and
shall not be construed for or against any of the parties.
(Emphasis added.).
2012 AMENDING AGREEMENT
In accordance with the Settlement Agreement, the parties entered into the 2012
Amending Agreement, which provides as follows:
1. Mossy Creek hereby relinquishes all its rights, title and interests in the
Tailings and the Tailings Dam referenced in the Young Mine Agreements
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and transfers all such rights, title and interests to Strawberry Plains. Upon
Mossy Creek’s execution of this Agreement, Strawberry Plains, not Mossy
Creek, will be the rightful owner of all Tailings and the Tailings Dam. In
furtherance of the provisions of this paragraph, the Young Mine Agreements
are hereby amended to delete Sections 4 and 7 of the Young Mine Agreement
and Section 1 of the Supplemental Easement, and the Young Mine
Agreements are hereby generally amended to provide that any provisions
therein that are contrary to this paragraph shall be of no further force or
effect.
2. The Tailings Easement (as defined in Section 2(a)(i) of the Original
Easement), including, without limitation, the provisions of Sections 2(a)(i)
and 3 of the Original Easement, is hereby terminated to the extent the same
is used solely and exclusively for access to the Tailings and to the Tailings
Dam. Such termination shall not affect any other easement rights granted to
Mossy Creek in any of the Young Mine Agreements, including, without
limitation, Mossy Creek’s rights to use of the Tailings Easement to the extent
necessary for use of any other casements granted to Mossy Creek under the
Young Mine Agreements.
Such Termination of the Tailings Easement shall not affect Mossy Creek’s
rights of access, ingress and egress to the Scale House, and Mossy Creek’s
rights of access, ingress and egress, and rights to load Ag Lime or rock on
the Young Mine property.
4. Section 8 of the Original Easement is hereby deleted in its entirety and
shall be replaced with the following in lieu thereof “8. TERM. The term of
the Easement Agreement (“Term”) shall commence on October 25, 2002 and
expire on October 24, 2052.” The Young Mine Agreements are generally
amended to provide that the term of the Young Mine Agreements shall be
for a period of time commencing upon October 25, 2002, and expiring on
October 24, 2052.
The Amending Agreement contains no explicit section entitled “Arbitration,” along
the lines of Section 14(c) of the Original Easement included in the Young Mine
Agreements. Other relevant provisions from the Amending Agreement are as follows:
7. The Young Mine Agreements, as amended by this Agreement, are to
remain in full force and effect and are to be deemed superseded by this
Agreement only to the limited extent necessary to implement the terms
hereof. In all other cases and for all other purposes the Young Mine
Agreements, shall be construed and treated as a single instrument and, to the
extent that they are not inconsistent therewith, all the terms and provisions
herein contained shall be defined and interpreted in conjunction with all of
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the terms and provisions of the Young Mine Agreements, as amended by this
Agreement.
***
9. Except as specifically set forth herein, this Agreement constitutes the
entire agreement between the parties as to the subject matter hereof, and shall
not be amended except in writing signed by all of the parties.
10. If any provision of the Agreement is held to be invalid, illegal or
unenforceable, the parties agree that the enforceability of the remaining
portions of this Agreement shall not be affected or impaired thereby. Any
court having jurisdiction and venue over the subject matter hereof, as
described in Section 12 below, may rewrite the invalid, illegal, or
unenforceable provision to the maximum extent permitted by law.
11. The validity, construction, interpretation and enforcement of this
Agreement shall be governed by the laws of Tennessee without regard to its
conflict of laws principles.
12. The parties hereby expressly agree that the Circuit and Chancery Courts
for Jefferson County, Tennessee and the Federal District Court for the
Eastern District of Tennessee shall have jurisdiction and venue over them
and the subject matter hereof to enforce this Agreement.
2023 ARBITRATION
On June 26, 2023, Strawberry Plains filed for arbitration in Nyrstar Tennessee
Mines—Strawberry Plains, LLC v. Mossy Creek Mining, LLC, No. 01-23-0002-8746.
Strawberry Plains sought damages for (among other things) Mossy Creek’s failure to clean
and maintain certain areas for which it was allegedly responsible under the Original
Easement. According to Strawberry Plains, Mossy Creek’s contractual breaches generated
additional solid waste in drainage ponds far from the TSF, which forced Strawberry Plains
to remove, transport, and deposit those solids on the TSF, causing the TSF to fill up more
quickly than it would have but for Mossy Creek’s conduct. Strawberry Plains claimed that
Mossy Creek’s breaches forced it to expand the TSF’s capacity to accept additional solid
waste more quickly than would have been required if Mossy Creek had complied with its
contractual obligations and minimized the solid waste it was generating.
Mossy Creek initially argued that Strawberry Plains’ claims were not arbitrable, but
the Arbitrator, in October 2023, found that the arbitration provision in the Young Mine
Agreements gave her jurisdiction to decide arbitrability issues. She rejected Mossy Creek’s
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argument that the arbitration agreement was superseded by the Amending Agreement and
determined that the arbitration provision of the Original Easement was in full force and
effect. Interpretation of the Settlement Agreement was not addressed in the arbitration.
Ultimately, the Arbitrator awarded Strawberry Plains declaratory relief and monetary
damages against Mossy Creek in a March 2024 interim award (“Interim Award”) and a
June 2024 final award (“Final Award”). The Arbitrator found that Mossy Creek was
responsible for $511,236 of costs associated with expanding the TSF’s capacity to
accommodate more solid waste.
On June 17, 2024, Mossy Creek paid a total of $1,947,589.15 owed under the Final
Award. Mossy Creek then sent a letter dated July 25, 2024, demanding that Strawberry
Plains indemnify it for $1,042,613.05 of the $1,947,589.15 paid. Per the Arbitrator’s
award, the amount related to the TSF Lifts constituted 54.55% of the total award. Mossy
Creek argues that applying the same percentage to the Arbitrator’s award to Strawberry
Plains for attorney fees, costs, pre-award interest, and post-award interest results in
Strawberry Plains, Nyrstar IDB, and Nyrstar NV owing Mossy Creek $344,272.99 for
attorney fees, $139,137.56 for costs, $45,466.35 for pre-award interest, and $2,500.15 for
post-award interest. Mossy Creek relies on the indemnity clause in the 2012 Settlement
Agreement which, again, provides in relevant part:
[Strawberry Plains] agrees to indemnify and hold Mossy Creek harmless
from any and all charges, claims, and/or obligations (including reasonable
attorneys’ fees and costs incurred) arising out of the condition of the tailings
dam, the integrity thereof, any discharge, runoff, or leakage therefrom, and
all claims of whatsoever kind or nature relating to or arising from
[Strawberry Plains’] operation, ownership and/or maintenance of the tailings
dam. . . .
On August 7, 2024, Strawberry Plains filed this action to confirm the Arbitrator’s
Final Award. By an agreed order entered October 31, 2024, the Arbitrator’s Interim Award
dated March 19, 2024, and the Arbitrator’s Final Award dated June 27, 2024, were
confirmed and adopted by reference by the trial court.
On October 22, 2024, Mossy Creek submitted its counterclaim for indemnity for
part of the payment it made to Strawberry Plains on July 17, 2024. At a hearing held on
January 10, 2025, the trial court found the dispute at issue concerns, arises out of, and
relates to indemnity obligations owed under the Confidential Settlement Agreement, and
observed:
Nowhere in the confidential settlement agreement, as I read it, does it
specifically reference that provision paragraph 14(c) of the original
easement.
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Strawberry Plains responded that meant the “provision still stays in effect; it’s not being
amended, superseded, or done away with.” The court found the Arbitrator’s decisions were
proper but provided:
I think as we get to the indemnification language arising out of the
confidential settlement agreement, the arbitration agreement and its
enforceability as to the confidential settlement agreement is a lot more fuzzy.
And while this Court understands that the law says that I should give strong
benefit to the arbitration agreement, I, having looked at it and read it and
evaluated it, believe that there’s nothing in the confidential settlement
agreement that says that or even suggests that any of the claims arising under
the indemnification provision would be determined under the arbitration
agreement of the original easement.
And so while both agreements give me room for pause on both sides, . . . I
do believe that the confidential settlement agreement is the agreement that
would control the indemnification provision, and that is not covered by the
arbitration agreement set forth in paragraph 14(c) of the original easement
agreement.
So I am going to deny the motion to compel arbitration. . . .
On January 27, 2025, the trial court entered an order denying Strawberry Plains’
motion to compel arbitration. This appeal was timely filed as a matter of right.
II. ISSUES
Strawberry Plains claims that the trial court erred in denying its motion to compel
arbitration for two reasons. First, it asserts that any challenge to arbitration must be decided
by the Arbitrator because the parties expressly delegated arbitrability questions to the
Arbitrator. Second, Strawberry Plains alleges that Mossy Creek’s counterclaims “aris[e]
out of or relat[e] to” the Original Easement, not the Settlement Agreement, so they must
be arbitrated under the arbitration provision of the Original Easement in any event. It is the
position of Strawberry Plains that Section 14(c) of the Original Easement is not inconsistent
with, and therefore is not superseded by the Amending Agreement, and, thus, remains in
full force and effect. As Strawberry Plains’ counsel asserted at the hearing:
Your Honor, we’re not asking you to invalidate or declare unenforceable any
provision of the settlement agreement. Again, we’re not saying that the
indemnity provision on which Mossy Creek is relying for its counterclaims
is invalid, illegal, or unenforceable. All we’re saying is they have to resolve
those claims in arbitration . . . . They are going to get their proverbial day in
court so to speak. It’s just going to happen in an arbitration and not here in
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this courtroom. . . .
Strawberry Plains therefore claims that we should reverse the trial court and remand with
instructions for the trial court to enter an order granting Strawberry Plains’ motion to
compel arbitration.
III. STANDARD OF REVIEW
This court’s review of the denial of a motion to compel arbitration is “de novo, with
no presumption of correctness.” Williams v. Smyrna Residential, LLC, 685 S.W.3d 718,
723 (Tenn. Ct. App. 2024). Likewise, we must review the trial court’s resolution of legal
issues without a presumption of correctness. Mitchell v. Kindred Healthcare Operating,
Inc., 349 S.W.3d 492, 496 (Tenn. Ct. App. 2008). Ordinary principles of contract law must
be applied to determine whether there is an enforceable agreement to arbitrate. Whether an
arbitration agreement was formed is always a question to be resolved by the court, Granite
Rock Co. v. Int’l Bhd. of Teamsters, 561 U.S. 287, 296, 130 S. Ct. 2847 (2010). In any
contract action, the court’s task “is to ascertain the intention of the parties based upon the
usual, natural, and ordinary meaning of the contractual language.” See Guiliano v. Cleo,
Inc., 995 S.W.2d 88, 95 (Tenn. 1999). It is a fundamental principle of Tennessee contract
law that unless there is “fraud, mistake, or some other defect, our courts are required to
interpret contracts as written, giving the language used a natural meaning.” Eberbach v.
Eberbach, 535 S.W.3d 467, 478 (Tenn. 2017) (citing U.S. Bank, N.A. v. Tenn. Farmers
Mut. Ins. Co., 277 S.W.3d 381, 386-87 (Tenn. 2009)). “Courts may determine the intention
of the parties ‘by a fair construction of the terms and provisions of the contract, by the
subject matter to which it has reference, by the circumstances of the particular transaction
giving rise to the question, and by the construction placed on the agreement by the parties
in carrying out its terms.” Frizzell Constr. Co. v. Gatlinburg, L.L.C., 9 S.W.3d 79, 85
(Tenn. 1999) (citing Penske Truck Leasing Co. v. Huddleston, 795 S.W.2d 669, 671 (Tenn.
1990)).
IV. DISCUSSION
Strawberry Plains first contends that Mossy Creek’s counterclaims present a
gateway “arbitrability” issue. Strawberry Plains maintains that the counterclaims “relat[e]
to” the Original Easement. To “determine whether parties delegated arbitrability issues to
the arbitrator, ‘there must be “clear and unmistakable” evidence that the parties agreed to
have an arbitrator decide such issues.” Blanton v. Domino’s Pizza Franchising, LLC, 962
F.3d 842, 844 (6th Cir. 2020) (citations omitted).
The Original Easement Arbitration text provides that an arbitrator must decide
“[a]ny dispute arising out of or relating to the [Original] Easement . . ., including without
limitation, the breach, termination or validity thereof” which has not been resolved by the
procedure described in Section 14. Strawberry Plains claims that phrase “[a]ny dispute”
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applies to all disputes, including ones regarding arbitrability. See Lacy v. Vanderbilt Univ.
Med. Ctr., No. M2016-02014-COA-R3-CV, 2017 WL 6273316, at *6 (Tenn. Ct. App. May
4, 2017) (“In its natural and ordinary usage, the phrase ‘related to’ simply means connected
to in some way.”).
Strawberry Plains argues that the references to the Young Mine Agreements in the
Settlement Agreement “confirm their ongoing validity” and asserts that there is no “express
provision” in the Settlement Agreement “excluding [this] grievance from arbitration.”
According to Strawberry Plains, the term “[e]xcept as specifically set forth herein” means
that the arbitration provisions in the Young Mine Agreements were going to remain in
place.
Further, Strawberry Plains maintains that the counterclaims at issue fall within the
broad scope of the Original Easement, a “dispute arising out of or relating to” the Original
Easement. It asserts that the Final Award forms the basis of the counterclaims, as Mossy
Creek is seeking indemnity for funds that the Arbitrator ordered it to pay Strawberry Plains
in the arbitration. Thus, Strawberry Plains stresses that “but for” the Final Award in the
arbitration conducted pursuant to the Original Easement’s Arbitration Agreement, Mossy
Creek would not be asserting the indemnity counterclaims.
Strawberry Plains relies on Henry Schein, Inc. v. Archer & White Sales, Inc., 586
U.S. 63, 39 S.Ct. 524 (2019) and Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79, 123
S.Ct. 588 (2002), involving the interpretation of arbitration provisions contained in the
applicable contracts between the parties. In Henry Schein, the contract at issue between the
parties contained an arbitration provision stating:
Any dispute arising under or related to this Agreement (except for actions
seeking injunctive relief and disputes related to trademarks, trade secrets, or
other intellectual property of [Schein]), shall be resolved by binding
arbitration in accordance with the arbitration rules of the American
Arbitration Association [(AAA)]. . . .
Henry Schein, 586 U.S. at 66. In Howsam, the contract at issue contained the following
arbitration provision:
all controversies . . . concerning or arising from . . . any account . . ., any
transaction . . ., or . . . the construction, performance or breach of . . . any . .
. agreement between us . . . shall be determined by arbitration before any self-
regulatory organization or exchange of which Dean Witter is a member.
Howsam, 537 U.S. at 81. The Settlement Agreement before us, however, has no such
provisions, as there is no mention of arbitration. Rather, the Settlement Agreement
provides:
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Should a dispute arise between or among the Parties concerning this
Agreement, including, but not limited to, a dispute involving the
interpretation, application, or compliance with any term or condition of the
Agreement, the Parties hereby consent to jurisdiction over their persons by
the state and federal courts of Tennessee. In the event a Party to this
Agreement brings suit to enforce all or any part of this Agreement, the Parties
agree that the prevailing party or parties in said suit will be entitled to recover
their reasonable attorneys’ fees, costs and expenses in prosecuting or
defending such suit.
We must agree with the trial court’s decision that the evidence supporting arbitration
is insufficient. As argued by Mossy Creek, there is no arbitration provision in the
Settlement Agreement, and the agreement is replete with references to a “suit” being filed
and with recovery of reasonable attorney’s fees and costs in any such “suit.” The Tennessee
Supreme Court, in Shelby County Health Care Corp. v. Nationwide Mutual Insurance Co.,
325 S.W.3d 88, 97 (Tenn. 2010), cited Black’s Law Dictionary for the definition of “suit”
as “[a]ny proceeding by a party or parties against another in a court of law.” As determined
by the Arbitrator in this matter before us, an arbitration does not constitute a common-law
action: “Although no Tennessee case on point has been located, the ordinary, plain meaning
of the term ‘actions’ is that an arbitration does not constitute a common-law action.” . . .
See Skidmore, Owings & Merrill v. Conn. Gen. Life Ins. Co., 197 A.2d 83, 86 (Conn. Super.
Ct. 1963):
[a]n arbitration proceeding is not the bringing of any action within the
meaning of the phrase as used in [the statute of limitations]. In a general
sense, the word “action” means the lawful demand of one’s right in a court
of justice; and in this sense it may be said to include any proceedings in such
a court for the purpose of obtaining such redress as the law provides. . . . an
arbitration is not a common-law action, and the institution of arbitration
proceedings is not the bringing of an action under any of our statutes of
limitation.”
As further argued by Mossy Creek, all of the parties agreed to litigate the dispute in
a Tennessee state court in the event “suit” is brought to interpret, apply, or adjudge
compliance with the terms of the Settlement Agreement; the Settlement Agreement grants
the power to rewrite any of its provisions found to be invalid, illegal, or unenforceable to
the “Court”—not an arbitrator; and no reference to or incorporation of the American
Arbitration Association’s Commercial Arbitration Rules and Mediation Procedures is
found in the Settlement Agreement. The Settlement Agreement contains a provision
establishing that it is the entire agreement between the parties, which indicates the parties’
intent to “embody their complete and exclusive agreement.” See Individual Healthcare
Specialists, Inc. v. BlueCross BlueShield of Tenn., Inc., 566 S.W.3d 671, 697 (Tenn. 2019).
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As noted above, the trial court concluded “that there’s nothing in the confidential
settlement agreement that . . . even suggests that any of the claims arising under the
indemnification provision would be determined under the arbitration agreement of the
original easement.” Any dispute over the indemnification provision is a dispute “between
or among the Parties concerning this Agreement, including, but not limited to, a dispute
involving the interpretation, application, or compliance with any term or condition of this
Agreement.” We conclude that the trial court properly denied the motion to compel.
V. CONCLUSION
We affirm the trial court’s denial of the motion to compel arbitration and remand
for further proceedings consistent with this opinion. Any unaddressed pending motions are
denied as moot. Costs are assessed to the appellant, Nyrstar Tennessee Mines-Strawberry
Plains, LLC.
s/John W. McClarty
JOHN W. McCLARTY, JUDGE
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