Gerl Construction Co. v. Medina County Board of Commissioners

493 N.E.2d 270, 24 Ohio App. 3d 59, 24 Ohio B. 113, 1985 Ohio App. LEXIS 10141
CourtOhio Court of Appeals
DecidedApril 15, 1985
Docket48779
StatusPublished
Cited by21 cases

This text of 493 N.E.2d 270 (Gerl Construction Co. v. Medina County Board of Commissioners) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerl Construction Co. v. Medina County Board of Commissioners, 493 N.E.2d 270, 24 Ohio App. 3d 59, 24 Ohio B. 113, 1985 Ohio App. LEXIS 10141 (Ohio Ct. App. 1985).

Opinion

Ann McManamon, J.

This is an appeal by plaintiff-appellant, Gerl Construction Company (“Gerl”), from a judgment of the Cuyahoga County Court of Common Pleas which denied the appellant’s application to vacate an arbitration award and confirmed the award as rendered by the arbitrators.

On June 20, 1977, appellant and defendant-appellee, Medina County Board of Commissioners (“board”), entered into a contract for the construction of sewer lines on what came to be known as the “Wadsworth Project.” This agreement included a provision requiring the submission of disputes to binding arbitration under the auspices of the American Arbitration Association (“AAA”)

In accordance with this provision, Gerl filed a demand for arbitration on August 27, 1981, contending that it had encountered unforeseen and unusual construction difficulties during the course of performance. Additional compensation of $1,496,959.72 was sought from the board.

In January 1982, the AAA made an administrative appointment of one arbitrator, Stanley L. Censen. The parties were then given a list of seven names from which additional appointments were to be made. On January 21, 1982, Emil J. Biskup and Jack J. Bergson were selected from this list to complete the panel. 1

Arbitration proceedings commenced in Cleveland, Ohio in April 1982. On July 1,1982, the arbitrators, by a unanimous vote, awarded Gerl $78,936.96 as additional compensation. Thereafter, appellant filed this action seeking an order from the trial court vacating the arbitration award.

In its application, Gerl alleged that, prior to the arbitration and award, one of the arbitrators, Emil J. Biskup, had failed to reveal or disclose “that he had a contractual relationship for the performance of professional services * * * with defendant Medina County Board of Commissioners * * *.”

On April 19, 1984, the matter was tried to the court which subsequently affirmed the award on May 23, 1984. Gerl timely appeals from this judgment citing one assignment of error:

“Where plaintiff presented competent, credible and unrebutted evidence establishing all elements necessary to vacate an arbitration award under Ohio Rev. Code § 2711.10; and defendant presented no evidence establishing any affirmative defenses; the trial court’s judgment for defendant was against the manifest weight of the evidence and must be reversed.”

The board by way of cross-appeal has cited four assignments of error for review:

“A. The trial court erred in failing to grant the county’s motion to amend its answer.
“B. The trial court erred in failing to admit defendant’s exhibits E, F, G, H, and I into evidence.
“C. The trial court should have entered judgment for the county because Gerl waived its right to object to Mr. Biskup’s conduct.
“D. The trial court erred in deny *61 ing the county’s motion to transfer this case to the Medina County Court of Common Pleas.”

I

The major issue presented by Gerl’s appeal is whether the trial court erred in refusing to vacate the arbitrators’ award.

As a general proposition courts have recognized that:

“ ‘It is the policy of the law to favor and encourage arbitration and every reasonable intendment will be indulged to give effect to such proceedings and to favor the regularity and integrity of the arbitrators’ acts. * * *’ Campbell v. Automatic Die & Products Co. (1954), 162 Ohio St. 321, 329 [55 O.O. 195]; Dayton Teachers Assn. v. Dayton Bd. of Edn. (1975), 41 Ohio St. 2d 127, 132 [70 O.O.2d 223]; Brennan v. Brennan (1955), 164 Ohio St. 29, 35-36 [57 O.O. 71], Arbitration is favored because its purpose is to avoid needless and expensive litigation. Springfield v. Walker (1885), 42 Ohio St. 543, 546. Hence, ‘[a]t common law, the courts have almost uniformly refused to vacate an arbitrator’s award because of an error of law or fact. It has been held that the arbitrator is the final judge of both law and facts, and that an award will not be set aside except upon a clear showing of fraud, misconduct or some other irregularity rendering the award unjust, inequitable, or unconscionable * * *, and that even a grossly erroneous decision is binding in the absence of fraud. * * *’ (Citations omitted.) Goodyear v. Local Union No. 200 (1975), 42 Ohio St. 2d 516, 522 [71 O.O.2d 509].” Menardi v. Petrigalla (1983), 11 Ohio App. 3d 9, 11.

R.C. 2711.10 delineates the circumstances under which the trial court may vacate an arbitration award. This section provides:

“In any of the following cases, the court of common pleas shall make an order vacating the award upon the application of any party to the arbitration if:
“(A) The award was procured by corruption, fraud, or undue means.
“(B) There was evident partiality or corruption on the part of the arbitrators, or any of them.
“(C) The arbitrators were guilty of misconduct in refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy; or of any other misbehavior by which the rights of any party have been prejudiced.
‘ ‘(D) The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made.
“If an award is vacated and the time within which the agreement required the award to be made has not expired, the court may direct a rehearing by the arbitrators.”

Appellant contends that the trial court erred in not vacating the arbitration award on the basis that there was evident partiality and misconduct and/or fraud on the part of arbitrator Biskup.

Biskup is the president of Biskup, Rowe & Associates, Inc. (“BRA”), a Cleveland architectural firm. It is undisputed that between 1976 and early 1981, Biskup’s firm performed architectural engineering services in Medina County as a subcontractor on the “Sewer District 500 Project” which involved construction of a waste water treatment plant unrelated to the project which is the subject of this litigation. As a result of its services, BRA received approximately $39,356 from the general contractors involved in the District 500 Project.

Kenneth Hotz, Medina County’s Sanitary Engineer for twenty-seven years, testified that, during his tenure, the county had never enjoyed any direct contractual relationship with BRA, nor *62 had it played any role in BRA’s selection and employment on the District 500 Project.

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Bluebook (online)
493 N.E.2d 270, 24 Ohio App. 3d 59, 24 Ohio B. 113, 1985 Ohio App. LEXIS 10141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerl-construction-co-v-medina-county-board-of-commissioners-ohioctapp-1985.