In re the Arbitration between Carroll & Gruner

915 P.2d 1365, 81 Haw. 264, 1996 Haw. App. LEXIS 85, 1996 WL 219731
CourtHawaii Intermediate Court of Appeals
DecidedMay 2, 1996
DocketNo. 16824
StatusPublished
Cited by3 cases

This text of 915 P.2d 1365 (In re the Arbitration between Carroll & Gruner) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Arbitration between Carroll & Gruner, 915 P.2d 1365, 81 Haw. 264, 1996 Haw. App. LEXIS 85, 1996 WL 219731 (hawapp 1996).

Opinion

ACOBA, Judge.

Respondents-Appellants Bruce Travis and Americorp (collectively referred to herein as “Travis”) appeal a March 8,1993 circuit court order granting the application of Respondents-Appellees Juergen Gruner and Christa Gruner (the Gruners) for confirmation of an arbitration award filed December 9, 1992 pursuant to Hawai'i Revised Statutes (HRS) § 658-8 (1993).1 We remand.

[266]*266The Gruners filed their application (the application) with the circuit court with an affidavit by their counsel attached. The affidavit states that the Gruners were owners of a condominium apartment and entered into a broker’s listing agreement with Travis for sale of the condominium apartment, that Thomas and Susan Luten retained claimant-appellees Pamela Carroll (Pamela) and ERA Maui Real Estate (collectively referred to herein as “Carroll”) to represent them in making an offer for the condominium apartment, that a dispute arose with regard to the offer, and that “pursuant to contractual provisions mandating [the] same, the matter was submitted to arbitration[.]” The copy of an “award” rendered by the arbitrator (the award) was attached to the application as an exhibit. Pursuant to the award entered on November 3,1992, Travis was found liable to the Gruners for $9,206.75 plus an amount for the administrative and arbitrator’s fees charged by the American Arbitration Association.

In response, Travis, appearing pro se, submitted a letter to the court filed on January 5, 1993, requesting a telephone conference because he was unable to attend the hearing in Honolulu. In the letter, Travis also stated that he had not agreed to the arbitration proceeding but had “protested [that] the hearing was invalid,” and “objected to the hearing and only appeared so as not to be in contempt of the proceeding[s].” The record does not indicate under what circumstances contempt would supposedly be imposed.2 Travis submitted a second letter to the circuit court which was also filed on January 5, 1993. The second letter contends that there was no agreement to arbitrate. Travis asserted that the purported arbitration agreement was contained in “paragraph 5.3 of the standard addendum to [a] DROA [ (Deposit Receipt Offer and Acceptance contract) ]” and that the buyers involved in the DROA had stricken the following language from that paragraph:

... then such dispute or claim shall be decided by neutral binding arbitration before a single arbitrator in accordance with the Commercial Arbitration rules of the American Arbitration Association.

According to Travis, the second letter was his “testimony in abstentia [sic] for the January 5, 8:30 a.m. [application] heating.”

The court minutes of January 5, 1993 indicate that the hearing on the Gruners’ application took place in chambers from 10:05 a.m. to 10:20 a.m. Travis appeared by telephone. No exhibits were received into evidence. The court only heard argument. The court granted the Gruners’ application and ordered that judgment be entered on the award.3

Based on the record below, we believe that the circuit court did not have a sufficient basis to grant the Gruners’ application. Travis objected to the application on the ground that the arbitration provision in the relevant [267]*267contract was deleted. The other parties did not file any written response to this objection. While the Gruners’ attorney’s affidavit referred to “contractual provisions mandating ... arbitration,” the arbitration agreement in issue was not made a part of the application nor submitted into evidence after Travis’s written objection. The award itself does not set forth the provisions of any arbitration agreement.4

On appeal, Travis, who again appears pro se, attached eleven exhibits to his opening brief and three exhibits5 to his reply brief. Exhibit 4 to Travis’s opening brief bears out the statement made in Travis’s second letter to the court that the language relating to arbitration in paragraph 5.3 was deleted. In its answering brief,- Carroll confirms that exhibit 4 to Travis’s opening brief is “the relevant contractual provision.” Carroll claims, however, that Travis was bound to arbitration because the provision “states that any dispute or claim against realtor and/or real estate licensee shall be submitted to ‘binding arbitration.’ ” The provisions for arbitration, however, were deleted from paragraph 5.3:

Mediation And Arbitration. If any dispute or claim in law or equity arises out of this DROA, Buyer and Seller agree in good faith to attempt to settle such dispute or claim by mediation under the Commercial Mediation rules of the American Arbitration Association. If such mediation is not successful in resolving such dispute or claim [prior text here deleted by the Grun-ers]
Any dispute or claim by or against any REALTOR and/or real estate licensee participating in this sale shall be submitted to mediation followed by binding arbitration consistent with the above provisions.

(Emphasis added.) The “above provisions” relating to arbitration were, as stated previously, deleted.

The exhibits attached to Travis’s briefs were not submitted to the circuit court. Carroll maintains that the exhibits were not made a part of the record below, and their consideration is precluded under Hawaii Rules of Appellate Procedure (HRAP) Rule 28(b)(9).6 We agree that under HRAP Rule 28(b)(9), Travis’s exhibits cannot be considered, and thus, we also cannot consider Carroll’s arguments regarding the subject paragraph 5.3.

As indicated previously, our review is limited to the record on appeal. We recognize that public policy favors the resolution of disputes by arbitration. Westin Hotel Co. v. Universal Inv., Inc., 72 Haw. 178, 811 P.2d 467, reconsideration denied, 72 Haw. 617, 841 P.2d 1074 (1991); see Gregg Kendall & Assoc., Inc. v. Kauhi, 53 Haw. 88, 93, 488 P.2d 136, 140 (1971). Nevertheless, it is well-established that a party cannot be compelled to arbitrate in the absence of an agreement to that effect. See Koolau Radiology, Inc. v. Queen’s Medical Ctr., 73 Haw. 433, 445, 834 P.2d 1294, 1300 (1992) (“[b]efore compelling an unwilling party to arbitrate,” the court must “engage in a limited review to ensure that the dispute is arbi-trable — i.e., that a valid agreement to arbitrate exists between the parties”) (internal quotation marks and citation omitted); see also Lee v. Heftel, 81 Hawai'i 1, 3, 911 P.2d 721, 723 (1996) (“when presented with a motion to compel arbitration,” the court must first decide whether an arbitration agreement exists between the parties before proceeding to the question of whether the dispute is arbitrable under the agreement) (quoting Koolau, 73 Haw. at 445, 834 P.2d at 1300).

In Westin Hotel, the Hawaii Supreme Court held that, in view of

the public policy of encouraging arbitration and of simplifying proceedings, ... a par[268]

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915 P.2d 1365, 81 Haw. 264, 1996 Haw. App. LEXIS 85, 1996 WL 219731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-carroll-gruner-hawapp-1996.