Floridians for Solar Choice, Inc. v. PCI Consultants, Inc.

314 F. Supp. 3d 1346
CourtDistrict Court, S.D. Florida
DecidedJune 8, 2018
DocketCase No. 15–cv–62688–BLOOM/Valle
StatusPublished
Cited by6 cases

This text of 314 F. Supp. 3d 1346 (Floridians for Solar Choice, Inc. v. PCI Consultants, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floridians for Solar Choice, Inc. v. PCI Consultants, Inc., 314 F. Supp. 3d 1346 (S.D. Fla. 2018).

Opinion

BETH BLOOM, UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court upon three motions: Defendants PCI Consultants, *1349Inc. and Angelo Paparella's Motion to Vacate Arbitral Award, ECF No. [17], filed on October 18, 2017; Plaintiff Floridians for Solar Choice, Inc.'s ("FSC") and Claimant in Arbitration Southern Alliance for Clean Energy, Inc.'s ("SACE," together with FSC, "Solar") Motion to Confirm Arbitration Award, with Supporting Memorandum of Law, ECF No. [20] ("Motion to Confirm"), filed on November 1, 2017; and a separately filed motion entitled "Defendant PCI's Supplemental Memorandum in Support of the Motion to Vacate", ECF No. [29], filed on November 21, 2017. The Court has reviewed the motions, the filings in support and opposition, the record, and is otherwise fully advised. For the reasons stated below, the Motion to Confirm, ECF No. [20] is granted and the Motion to Vacate, ECF No. [17], and Supplemental Motion to Vacate, ECF No. [29] (together, the "Motions to Vacate"), are denied.

I. PROCEDURAL BACKGROUND

Plaintiff FSC initially filed its Complaint on December 23, 2015 against Defendants PCI Consultants, Inc. ("PCI"), and PCI's principal, Angelo Paparella ("Paparella"). ECF No. [1]. FSC amended its complaint on January 13, 2016, ECF No. [8] ("Amended Complaint"). In the Amended Complaint, FSC alleged causes of action for breach of contract, fraud in the inducement, conversion, and unjust enrichment against PCI, and fraud in the inducement and conversion against Paparella. Id. at 7-9. Simultaneous to filing its Complaint, FSC filed a Motion to Compel Arbitration, ECF No. [4], arguing that the claims asserted relate to contracts under which Defendants agreed to arbitrate. Defendants opposed the motion. ECF No. [7]. The Court granted the motion to compel on January 22, 2016 and administratively closed the case. ECF No. [11].

On October 13, 2017, Defendants filed their Motion to Reopen Case, ECF No. [13], advising the Court that the parties had participated in an arbitration administered by the American Arbitration Association ("AAA") in April 2017. Defendants further advised the Court that the "sole arbitrator issued a non-final award on July 20, 2017 and on October 10, 2017, the arbitrator, retired Broward Circuit Court Judge Jeffrey Streitfeld ("Arbitrator"), issued a 'Final Award' adopting the non-final award." Id. at 1. In the Motion to Reopen, Defendants stated that they planned to move to vacate the award. The Court granted the Motion to Reopen. ECF No. [16].

Now before the Court are the Motions to Vacate, ECF Nos. [17] and [29], as well as Plaintiff's Motion to Confirm, ECF No. [20], along with their attached exhibits and notices, as follows:

1. Defendants PCI Consultants, Inc. and Angelo Paparella's Motion to Vacate Arbitral Award, ECF No. [17];
2. Declaration of Christian S. Molnar in Support of PCI Consultants, Inc.'s Petition to Vacate the July 20, 2017 and October 10, 2017 Arbitration Awards, ECF No. [17-1];
3. Declaration of Angelo Paparella in Support of PCI Consultants, Inc.'s Petition to Vacate the July 20, 2017 and October 10, 2017 Arbitration Awards, ECF No. [17-2];
4. Declaration of Levi Lesches in Support of PCI Consultants, Inc.'s Petition to Vacate the July 20, 2017 and October 10, 2017 Arbitration Awards, ECF No. [17-3] and attached Exhibits A-O, ECF No. [17-4];
5. Notice of Filing of Arbitration Hearing Transcripts in Support of the Motion to Vacate Arbitral Award (ECF No. 17), ECF No. [18], and attached hearing transcripts for April 25, 2017 (ECF No. [18-1] ), April 26, 2017 (ECF No. [18-2] ), and April 28, 2017 (ECF No. [18-3] );
*13506. Florida for Solar Choice, Inc.'s and Claimant in Arbitration, Southern Alliance for Clean Energy, Inc.'s Memorandum in Opposition to PCI Consultant, Inc.'s Motion to Vacate Arbitral Award, ECF No. [22], and attached exhibits, ECF Nos. [22-1]-[22-19];
7. Reply in Support of Motion to Vacate Arbitral Award, ECF No. [23], and attached exhibits, ECF Nos. [23-1]-[23-7];
8. Defendant PCI's Supplemental Memorandum in Support of the Motion to Vacate, ECF No. [29], and attached exhibits, ECF Nos. [29-1]-[29-5];
9. Solar Parties' Response to PCI Consultants, Inc.'s Supplemental Memorandum in Support of Its Motion to Vacate, ECF No. [31];
10. Defendant PCI Consultants' Rebuttal to Plaintiffs' Opposition to the Supplemental Memorandumrandum [sic] in Support of Motion to Vacate, ECF No. [32];
11. Plaintiff Floridians for Solar Choice, Inc.'s and Claimant in Arbitration, Southern Alliance for Clean Energy, Inc.'s Motion to Confirm Arbitration Award, with Supporting Memorandum of Law, ECF No. [20], and attached exhibits, ECF Nos. [20-1]-[20-5] and ECF No. [21-1];
12. Defendants [sic] Response in Opposition to the Solar Parties' Motion to Confirm Arbitration Award, ECF No. [25]; and
13. Solar Parties' Reply to PCI Consultants, Inc.'s Response in Opposition to Solar Parties' Motion to Confirm Arbitration Award, ECF No. [30], and attached exhibits, ECF Nos. [30-1] and [30-2].

In their Motions, Defendants make five arguments in favor of vacatur. First, Defendants argue that the award must be vacated because Solar employed "fraud and/or undue means" to procure an arbitration award in its favor. ECF No. [17] at 12. Second, Defendants argue that the Arbitrator, lacked jurisdiction to enter an award exceeding one million dollars. Id. at 18. Third, Defendants argue that the Arbitrator had "irrefutable bias" against Defendants. Id. at 21. Fourth, Defendants claim that the Arbitrator failed to hear evidence related to Solar's "surprise damages claim." Id. at 22. Lastly, Defendants argues that the AAA Rules barred entry of the October 10, 2017 final award ("October Final Award") in favor of Solar because the July 20, 2017 award ("July Award") was a "final award" that terminated the Arbitrator's jurisdiction. Id. at 23.

On November 21, 2017, Defendants filed a Supplemental Memorandum in Support of the Motion to Vacate, ECF No. [29]. There, Defendants further argue that the July Award was a "final award" precluding entry of the October Final Award because (1) according to an email from the AAA to the parties, after the July Award was issued, AAA administratively closed the case, ECF No. [29-1], and (2) the file name of the uploaded PDF of the July Award on the AAA's Webfile System read "Final Award." ECF No. [29-5] at 3. Defendants additionally argue that Solar conceded that the July Award was a final award because after the Arbitrator issued the October Final Award, Plaintiff moved to reopen the case to correct a typographical error in the October Final Award. ECF No. [29] at 7-8.

In response, Solar argues that the Arbitrator's award is supported by the record evidence and that Defendants have failed to meet their burden on their claim of fraud or undue means under Bonar v. Dean Witter Reynolds Inc. ,

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314 F. Supp. 3d 1346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floridians-for-solar-choice-inc-v-pci-consultants-inc-flsd-2018.