ASPHALT PAVING SYSTEMS, INC. VS. ASSOCIATED ASPHALT PARTNERS, LLC (L-0978-16, ATLANTIC COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedNovember 16, 2020
DocketA-1267-19T4
StatusUnpublished

This text of ASPHALT PAVING SYSTEMS, INC. VS. ASSOCIATED ASPHALT PARTNERS, LLC (L-0978-16, ATLANTIC COUNTY AND STATEWIDE) (ASPHALT PAVING SYSTEMS, INC. VS. ASSOCIATED ASPHALT PARTNERS, LLC (L-0978-16, ATLANTIC COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ASPHALT PAVING SYSTEMS, INC. VS. ASSOCIATED ASPHALT PARTNERS, LLC (L-0978-16, ATLANTIC COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-1267-19T4

ASPHALT PAVING SYSTEMS, INC.,

Plaintiff-Appellant,

v.

ASSOCIATED ASPHALT PARTNERS, LLC, and ASSOCIATED ASPHALT TRANSPORT, LLC,

Defendants-Respondents. ____________________________

Argued October 15, 2020 – Decided November 16, 2020

Before Judges Ostrer, Accurso, and Vernoia.

On appeal from the Superior Court of New Jersey, Law Division, Atlantic County, Docket No. L-0978-16.

Colin G. Bell argued the cause for appellant (Hankin Sandman Palladino Weintrob & Bell, attorneys; Colin G. Bell, on the briefs).

Kathleen F. Beers argued the cause for respondents (Westmoreland Vesper Quattrone & Beers, attorneys; Kathleen F. Beers, on the brief). PER CURIAM

Plaintiff Asphalt Paving Systems, Inc. appeals from an order denying its

request to vacate an arbitration award entered in favor of defendants Associated

Asphalt Partners, LLC and Associated Asphalt Transport, LLC. Plaintiff

contends the court erred by failing to find there was an appearance of

impropriety concerning the arbitrator that required vacation of the award under

N.J.S.A. 2A:23B-23(a)(2). Based on our review of the record, we are convinced

plaintiff failed to sustain its burden of establishing evident partiality of the

arbitrator requiring vacation of the award under N.J.S.A. 2A:23B-23(a)(2), and

plaintiff otherwise waived its right to challenge the award under the statute by

failing to assert its claim prior to its receipt of the unfavorable arbitration award.

We therefore affirm.

I.

The facts and procedural history are well-known to the parties and have

been previously summarized in our decision on plaintiff's initial appeal, Asphalt

Paving Systems, Inc. v. Associated Asphalt Partners, LLC, (Asphalt Paving I),

No. A-5487-15 (App. Div. Oct. 19, 2017), and in our decision on plaintiff's

appeal from the court's order following the remand hearing we ordered in

Asphalt Paving I, Asphalt Paving Systems, Inc. v. Associated Asphalt Partners,

A-1267-19T4 2 LLC, (Asphalt Paving II), No. A-5730-17 (App. Div. Aug. 7, 2019). We restate

the pertinent facts to provide context for our discussion of plaintiff's arguments.

In 2012, defendants sold plaintiff asphalt emulsion, which was delivered

in two tankers. The tankers remained on plaintiff's property while plaintiff used

the emulsion as needed. The tankers were stolen from plaintiff's property, and

defendants filed suit claiming plaintiff was responsible for the loss of the

tankers.

With the assistance of a mediator, the parties resolved their dispute and

reached a settlement requiring that plaintiff provide defendants with

replacement tankers. The parties agreed to submit any disputes arising under

the settlement agreement to binding arbitration, and they agreed the mediator

would serve as the designated arbitrator for any disputes submitted to

arbitration.

A dispute between the parties arose and was arbitrated. Plaintiff later

alleged that as the arbitration ended, the arbitrator asked the parties and their

counsel, "What would be the result if I determined the agreement is too

A-1267-19T4 3 ambiguous to enforce?" Plaintiff also alleged that, in response, defendants'

counsel replied, "I will tell you what happens. You get sued for malpractice."1

It is this exchange between the arbitrator and defendants' counsel that is

at the center of plaintiff's claim the arbitration award, which was subsequently

rendered by the arbitrator and was unfavorable to plaintiff, should be vacated.

At the time it occurred, however, plaintiff did not object to the exchange, make

any comments concerning it, or request the recusal or disqualification of the

arbitrator based on any alleged appearance of impropriety or evident partiality.

Instead, plaintiff opted to await the issuance of the arbitrator's written arbitration

award—which was unfavorable to plaintiff—to file a complaint and order to

show cause requesting vacation of the award in accordance with N.J.S.A.

2A:23B-23(a)(2). Plaintiff claimed the award was secured by undue means. See

Asphalt Paving I, slip op. at 7. More particularly, plaintiff alleged defendants'

counsel threatened legal action against the arbitrator, and, in response, the

arbitrator ruled in defendants' favor. See ibid.

The trial court rejected plaintiff's request to vacate the arbitration award

based in part on the court's personal knowledge of the arbitrator. See ibid. We

1 We note that defendants' counsel at the arbitration is not their counsel of record on this appeal. A-1267-19T4 4 determined the court erred by relying on its personal knowledge of the arbitrator,

and we found there were factual issues as to "whether [defendants' counsel]

made a material threat against the arbitrator and, if so, whether such threat

influenced [the arbitrator's] decision." Ibid. We reversed the court's order,

remanded for an evidentiary hearing, and found it unnecessary to address

plaintiff's remaining claims at that time. Id. at 8.

The remand hearing was conducted by a different judge, who found that

at the conclusion of the arbitration, the arbitrator posed the following question

to the parties: "What would be the result if I determined the agreement is too

ambiguous to enforce?" Asphalt Paving II, slip op. at 4. The court further found

that in response, defendants' counsel stated, "[W]ell, you'll get sued." Ibid.

(alteration in original).

As we explained in Asphalt Paving II, the trial court noted defendants'

counsel described the exchange as "banter" and "witticism," and testified that

when it occurred, "[he] was laughing, [and] so was" the arbitrator. Id. at 5

(alterations in original). The court found the exchange "wholly inappropriate"

and "unsuitable behavior that calls into question the very quality and

professionalism of [the] proceedings." Ibid. (alteration in original). However,

the court determined it was "clear from the testimony that [the arbitrator] did

A-1267-19T4 5 not view [defendants' counsel's] comments as a threat, but rather something said

in jest and made in response to [the arbitrator's] own ill-chosen question." Ibid.

(first and second alterations in original). The court also found defendants '

counsel's statement did "not constitute a 'material threat,'" and the exchange was

not "of such a nature that it affected [the arbitrator's] decision-making process."

Ibid. (alteration in original). The court concluded plaintiff did not sustain its

burden of demonstrating undue influence requiring vacation of the arbitration

award.

The court did not address plaintiff's claim that the award should be vacated

due to an alleged appearance of impropriety. The court determined the argument

had not been raised on plaintiff's initial appeal and was not addressed in our

decision in Asphalt Paving I. The court found our remand was limited to

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Del Piano v. Merrill Lynch
859 A.2d 742 (New Jersey Superior Court App Division, 2004)
Fred J. Brotherton, Inc. v. Kreielsheimer
83 A.2d 707 (Supreme Court of New Jersey, 1951)
Van Duren v. Rzasa-Ormes
926 A.2d 372 (New Jersey Superior Court App Division, 2007)
Manalapan Realty v. Township Committee of the Township of Manalapan
658 A.2d 1230 (Supreme Court of New Jersey, 1995)
Kimm v. BLISSET, LLC
905 A.2d 887 (New Jersey Superior Court App Division, 2006)
Arista Marketing v. Peer Group Inc.
720 A.2d 659 (New Jersey Superior Court App Division, 1998)
Barcon Assocs., Inc. v. Tri-County Asphalt Corp.
390 A.2d 684 (New Jersey Superior Court App Division, 1978)
Barcon Associates, Inc. v. Tri-County Asphalt Corp.
430 A.2d 214 (Supreme Court of New Jersey, 1981)
Manger v. Manger
9 A.3d 1081 (New Jersey Superior Court App Division, 2010)
Jersey City Redevelopment Agency v. Mack Properties Co. 3, Ltd. Partnership
656 A.2d 35 (New Jersey Superior Court App Division, 1995)
Minkowitz v. Israeli
77 A.3d 1189 (New Jersey Superior Court App Division, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
ASPHALT PAVING SYSTEMS, INC. VS. ASSOCIATED ASPHALT PARTNERS, LLC (L-0978-16, ATLANTIC COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/asphalt-paving-systems-inc-vs-associated-asphalt-partners-llc-njsuperctappdiv-2020.