Coastal Roofing Co. v. P. Browne & Associates

771 F. Supp. 2d 576, 2010 U.S. Dist. LEXIS 5184, 2010 WL 346318
CourtDistrict Court, D. South Carolina
DecidedJanuary 22, 2010
DocketC.A. 2:07-3008-PMD
StatusPublished
Cited by5 cases

This text of 771 F. Supp. 2d 576 (Coastal Roofing Co. v. P. Browne & Associates) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coastal Roofing Co. v. P. Browne & Associates, 771 F. Supp. 2d 576, 2010 U.S. Dist. LEXIS 5184, 2010 WL 346318 (D.S.C. 2010).

Opinion

ORDER

PATRICK MICHAEL DUFFY, District Judge.

This matter is before the court on Plaintiff Coastal Roofing Company, Inc.’s motion to vacate an arbitrator’s award and Defendants’ motion to lift the court’s stay and confirm the arbitrator’s award. For the reasons set forth herein, Plaintiffs motion to vacate is denied, and the court grants Defendants’ motion and confirms the arbitrator’s award.

BACKGROUND

Plaintiff Coastal Roofing Company, Inc. (“Coastal”) is in the business of installing and repairing roofs. In the summer of 2006, Coastal President Richard Ryan (“Ryan”) began negotiating with representatives of a company called Broadband Construction, LLC (“Broadband”). Defendants Paul Browne & Associates and Paul Browne (collectively, “Browne”) had been given a contract to perform roofing work at the United States Navy’s SPA-WAR facility at the Charleston Weapons Station. Browne had then subcontracted this work to Broadband. Broadband, in turn, was in negotiations to subcontract the work to Coastal. Representing Broadband was Donald T. Reynolds (“Reynolds”), who held himself out to be President of Broadband. On August 11, 2006, the parties entered into a contract, which contained the terms under which Coastal would perform the actual roofing work in question.

On February 21, 2007, Broadband’s attorney sent a letter to Coastal informing them that their employment had been terminated due to insufficient progress on the job. At this point, Reynolds, again holding himself out to be President of Broadband, entered into a separate contract with another subcontractor, Glasgow Roofing Company, Inc., to complete the roofing work for which Coastal had been hired. In April 2007, Coastal notified Broadband’s counsel that it would demand arbitration for breach of contract over its termination. While conducting research for the arbitration, Coastal discovered that Broadband Construction, LLC, did not in fact exist as a limited liability corporation. After bringing this issue up to Broadband’s attorney, the attorney responded that the actual contracting party had been Broadband Construction Services, LLC. Upon conducting more research, however, Coastal discovered that Broadband Construction Services, LLC had actually been dissolved with the Secretary of State on December 31, 2006. Despite this, Reynolds continued to do business as Broadband, particularly with Glasgow, well after this date.

On June 26, 2007, the parties met for mediation of this dispute, but were unable to resolve their differences. The mediator suggested that the two parties document their differences, submit them to him, and return for mediation on September 12. On September 5, Coastal sent a letter to Broadband’s attorney informing him that Coastal would not be attending any further mediation. Also on September 5, Coastal filed the present action against Defendants in this court. In its Complaint, Plaintiff alleges five separate causes of action: (1) a violation of the Miller Act, which requires contractors on federal con- *579 struetion contracts to obtain a surety bond; (2) a legal claim for quantum meru-it, or the legal value of services rendered; (3) fraud; (4) civil conspiracy; and (5) a request for a declaratory judgment that no contract was formed between Plaintiff and Broadband or any Defendants. Plaintiff sought compensatory damages in the amount of services rendered for its roofing services, punitive damages, attorneys’ fees, and a declaration that both the surety bond obtained by Plaintiff and the agreement between Coastal and Broadband are null and void. On December 5, 2007, 585 F.Supp.2d 708 (D.S.C.2007), this court stayed the litigation and ordered the parties to arbitration pursuant to an arbitration provision in their contract, and prior to arbitrating the claim, Mr. Anthony and Broadband asserted the following counterclaims against Plaintiff: breach of contract, breach of express and implied warranties, negligence, and indemnity. The arbitrator issued his award on June 29, 2009, in which he found in favor of the Broadband Companies, LLC, as successor to Broadband Construction Services, LLC, in the total amount of $742,098.60, and on July 27, 2009, he confirmed the award after the parties filed motions to modify it. Besides itemizing the damages awarded, the arbitrator did not provide the reasoning for his award. Now, Fred Anthony and Broadband have filed with the court a motion to lift the court’s stay and confirm the arbitration award, while Coastal moved the court to vacate it.

ANALYSIS

It is well settled that a court’s review of an arbitration award “is among the narrowest known to the law.” United States Postal Service v. Am. Postal Workers Union, AFL-CIO, 204 F.3d 523, 527 (4th Cir.2000) (internal quotation marks omitted). “A court sits to ‘determine only whether the arbitrator did his job — not whether he did it well, correctly, or reasonably, but simply whether he did it.’” Id. (quoting Mountaineer Gas Co. v. Oil, Chem. & Atomic Workers Int’l Union, 76 F.3d 606, 608 (4th Cir.1996)). “As long as the arbitrator is even arguably construing or applying the contract and acting within the scope of his authority, that a court is convinced he committed serious error does not suffice to overturn his decision.” United Paperworkers Int’l Union, AFL-CIO v. Misco, Inc., 484 U.S. 29, 38, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987). The Fourth Circuit has emphasized the limited scope of judicial review because “[a] policy favoring arbitration would mean little, of course, if arbitration were merely the prologue to prolonged litigation----Opening up arbitral awards to myriad legal challenges would eventually reduce arbitral proceedings to the status of preliminary hearings.” Remmey v. PaineWebber, Inc., 32 F.3d 143, 146 (4th Cir.1994). Therefore, “[a] confirmation proceeding under 9 U.S.C. § 9 is intended to be summary: confirmation can only be denied if an award has been corrected, vacated, or modified in accordance with the Federal Arbitration Act.” Taylor v. Nelson, 788 F.2d 220, 225 (4th Cir.1986); see also Ott-ley v. Schwartzberg, 819 F.2d 373, 376 (2d Cir.1987) (“Absent a statutory basis for modification or vacatur, the district court’s task [is] to confirm the arbitrator’s final award as mandated by section 9 of the Act.”). It is the plaintiffs burden to prove that the unfavorable portions of the award should be vacated, as provided in sections 10 and 11 of the Federal Arbitration Act. O.R. Securities, Inc. v. Professional Planning Associates, Inc., 857 F.2d 742, 748 (11th Cir.1988).

I. Coastal’s Motion to Vacate the Arbitrator’s Award

Plaintiff asks the court to vacate the arbitrator’s award pursuant to 9 U.S.C.

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771 F. Supp. 2d 576, 2010 U.S. Dist. LEXIS 5184, 2010 WL 346318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-roofing-co-v-p-browne-associates-scd-2010.