Brandon v. Hines

439 A.2d 496, 1981 D.C. App. LEXIS 411
CourtDistrict of Columbia Court of Appeals
DecidedDecember 21, 1981
Docket79-1174
StatusPublished
Cited by45 cases

This text of 439 A.2d 496 (Brandon v. Hines) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandon v. Hines, 439 A.2d 496, 1981 D.C. App. LEXIS 411 (D.C. 1981).

Opinions

FERREN, Associate Judge:

Appellant, a building contractor, sued for breach of a construction contract to renovate appellee’s premises. The contract contained an arbitration clause. The trial court stayed the litigation pending arbitration, and the arbitrators ultimately rendered an award in appellant’s favor. The trial court, however, denied appellant’s motion to confirm the award as a judgment, vacated the award on the ground that the arbitration panel had decided the case out of time, and directed the parties to trial.

This case presents two questions of first impression for this court. The first is whether the trial court’s order denying the motion to confirm the arbitration award, vacating the award, and directing the parties to trial is an appealable order. We hold that the order is an appealable interlocutory [498]*498order “dissolving” an “injunction[ ]” under D.C.Code 1973, § ll-721(a)(2)(A).

The second question is whether the trial court erred in vacating the award as untimely. We hold that when, as here, the court authorizes arbitration to proceed by “rule of court,” each party’s consent to a reasonable extension of time for rendering the award is presumed, unless a party promptly files a motion with the court objecting to continuation of the arbitrators’ deliberations. Because appellee failed to inform the court of his challenge to the arbitrators’ authority, and the arbitrators’ two-week delay in rendering the award was reasonable, we reverse and remand the case for entry of judgment on the award.

I.

On July 1, 1975, appellant, William L. Brandon, and appellee, William J. Hines, entered into a written agreement for Brandon to renovate Hines’ townhouse at 1905 S Street, N.W. The contract contained an arbitration clause:

ARTICLE XI
Arbitration
11.1 All claims, disputes and other matters in question between parties to this Agreement arising out of or relating to this Agreement or the breach thereof, shall be decided by arbitration. Each party shall designate an arbitrator; and the two designated arbitrators shall in turn designate a third arbitrator. Rules of arbitration shall be prescribed by the Construction Industry Arbitration Rules of the American Arbitration Association.
11.2 Notice of the demand for arbitration shall be filed in writing with the other party to this Agreement. The demand shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations.
11.3The award rendered by the arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

In early October, 1976, Brandon submitted a final bill to Hines covering both the work specified in the contract and additional items requested during construction. Hines refused to pay, claiming that the work was unsatisfactory and that the bill listed as extras various items included in the basic contract.

On January 11, 1977, Brandon’s attorney wrote to Hines, stating that Brandon “will be willing to undertake to arbitrate the construction contract dispute” and requesting that Hines “give formal notice of demand for arbitration in writing within the next five working days .. .. ” The letter concluded:

If we do not receive your notice of demand for arbitration within five working days of the date of this letter, we will assume that you have chosen not to initiate arbitration and we will promptly initiate a civil lawsuit to determine the rights of the parties in this controversy.

On January 17 Hines replied that “it may be a little premature for arbitration in that ... [i]t would 'be difficult to ascertain my damages at this time.” Hines stated that he “would prefer to discuss a settlement without resorting either to arbitration or the courts. However, if action beyond negotiation is necessary, the courts may be the best way to do it.”

Brandon filed suit on February 7, 1977, seeking money damages for breach of contract, payment for goods delivered to Hines, and enforcement of a mechanic’s lien. On April 14, Hines served a motion to dismiss the complaint on the ground that the parties had agreed to arbitrate all disputes arising from the contract. Brandon opposed the motion on the grounds that Hines had waived his right to arbitrate and that, in any event, the court should not dismiss but merely stay the proceedings. On July 5,1977, the trial court denied the motion to [499]*499dismiss and ordered “that this case be stayed pending arbitration to be initiated within 30 days.” Neither party appealed this order.

Brandon initiated the arbitration proceeding two weeks later by sending to Hines and filing with the American Arbitration Association (AAA) a demand for arbitration seeking the recovery requested ,by the complaint as well as costs and attorney’s fees. By the end of November, a panel of three arbitrators had been chosen: Brandon and Hines each designated one arbitrator, and the two party-appointed arbitrators chose a third panel member.

On January 18, 1978, Hines moved to set aside the stay of litigation pending arbitration on the ground that Brandon was an unlicensed contractor, and the Home Improvement Licensing Regulations, 5Y DCRR § 2.1 (1970), therefore, rendered the contract (including the arbitration clause) void and unenforceable. Brandon opposed the motion on the ground that the Home Improvement Licensing Regulations did not apply, and that even if they did, the question of the validity of the contract was one for the arbitrators. At the court’s suggestion, the first arbitration hearing, set for January 27, was postponed. The court ultimately denied the motion to set aside the stay.

The arbitration panel held hearings on March 30, April 6, and April 26, 1978. The parties filed over 250 pages of exhibits and pre- and post-hearing briefs. In accordance with AAA rules, the AAA declared the hearings closed on June 12, 1978, and informed the panel and the parties that “[t]he Panel will have thirty (30) days or until on or before July 12, 1978, within which to render the award.”

Close to the end of this thirty-day period, by letter of July 10,1978, the AAA notified counsel for the parties that the arbitrators had informed the AAA of their need for additional time and had requested an extension of a minimum of 30 days. The letter stated, “We hope you will agree to the extension. Enclosed is an extra copy of this letter containing a form of authorization which you may use by signing and returning it to this office. Thank you in advance for your cooperation.” The authorization read, “I hereby consent to the extension of time requested by the Arbitrator to _ for making his award,” followed by date and signature lines.

By letter of July 13, 1978, the day after the original time limit for rendering the award had expired, Hines’ attorney advised the AAA that his client did not consent to the requested extension. Hines’ attorney reiterated this position in letters to the AAA dated July 18 and 19, 1978.

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Bluebook (online)
439 A.2d 496, 1981 D.C. App. LEXIS 411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandon-v-hines-dc-1981.