Kenneth W. Brooks Trust A. v. Pacific Media, L.L.C.

44 P.3d 938, 111 Wash. App. 393
CourtCourt of Appeals of Washington
DecidedApril 25, 2002
DocketNo. 20281-0-III
StatusPublished
Cited by11 cases

This text of 44 P.3d 938 (Kenneth W. Brooks Trust A. v. Pacific Media, L.L.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenneth W. Brooks Trust A. v. Pacific Media, L.L.C., 44 P.3d 938, 111 Wash. App. 393 (Wash. Ct. App. 2002).

Opinion

Brown, C.J.

Lessor Kenneth W. Brooks Trust A. (the Trust) filed a breach of lease complaint against Pacific [395]*395Media, lessee of The Magic Lantern Theater. The parties agreed to enter binding arbitration pursuant to chapter 7.04 RCW. The arbitrator made an award to the Trust. The Trust moved the superior court to confirm the award. Pacific Media tendered and the Trust accepted payment of the award in full before the confirmation hearing. At the confirmation hearing, the trial court declined to enter the proposed confirmation order and, instead, dismissed the complaint. The Trust appeals, arguing (1) an inadequate award, and (2) trial court error in dismissing its complaint without first confirming the award. Because the arbitration award is not properly before us, and the Trust accepted tender of the award prior to the confirmation hearing, we decide in the interests of judicial economy and in furtherance of the principles underlying arbitration as a means of dispute resolution, that the trial court properly treated the matter as settled. Accordingly, we affirm.

FACTS

In September 1998, the Trust leased The Magic Lantern Theater to Pacific Media for a term of five years. In October 1999, the Trust filed a complaint for breach of lease against Pacific Media. In February 2001, pursuant to an agreement between the parties, the superior court entered an agreed order for binding arbitration. Arbitration was to be conducted in accordance with chapter 7.04 RCW.

On April 17, 2001, the arbitrator sent the parties a letter awarding the Trust 24 months of overdue rent ($36,000), five percent in late charges, and attorney fees. The arbitrator also ordered Pacific Media to remove its equipment from the premises within 30 days. The arbitrator later set the attorney fee award at $6,000.

On June 5, the Trust moved to confirm the arbitration award. On June 13, Pacific Media paid the arbitration award in full ($43,963.57). The proposed order of confirmation reflected both the face amount of the award and Pacific Media’s satisfaction of it. By notation order, the trial court [396]*396rejected the proposed order of confirmation and granted Pacific Media’s motion to dismiss with prejudice.

The Trust appeals, arguing (1) the arbitrator erred in the amount of damages awarded, and (2) the superior court erred in dismissing the breach of lease claim.

ANALYSIS

A. Damages

The first issue suggested by the Trust is whether the arbitrator erred “as a matter of law because the award was not based on the proper measure of damages.” Appellant’s Br. at 1. Next, the Trust suggests the arbitrator “did not follow the contract provisions on default and remedies and was therefore arbitrary and capricious and erred in obvious fact.” Appellant’s Br. at 1. Nevertheless, the broader issue is whether the trial court erred by dismissing the Trust’s breach of lease claim with prejudice. RCW 7.04.220. Should the Trust prevail, the sole remedy would be remand for entry of an order confirming the award. Thus, award validity is not yet before this court.

Moreover, the record shows no attempt by the Trust to vacate, modify, or correct the arbitrator’s award below. RCW 7.04.160, .170. To the contrary, the Trust moved to confirm the very award it now attacks. RCW 7.04.150. Therefore, the Trust’s arguments conflict: (1) the arbitration award was invalid, but (2) the award should have been confirmed anyway. The Trust did not challenge the arbitrator’s damage award below. Accordingly, the matter is unreviewable. RAP 2.5(a). Nevertheless, the Trust appears to argue, contrary to well-settled principles of arbitration law, that we have inherent authority to review the substantive merits of the arbitrator’s award.

“Washington courts have given substantial finality to arbitrator decisions rendered in accordance with . . . RCW 7.04.” Davidson v. Hensen, 135 Wn.2d 112, 118, 954 P.2d 1327 (1998). Consistent with this state’s [397]*397strong policy favoring finality of arbitration awards, judicial review of such awards “is limited to the face of the award.” Id. (citing Boyd v. Davis, 127 Wn.2d 256, 263, 897 P.2d 1239 (1995)). Absent an error of law on the face of the arbitrator’s award, the reviewing court will not vacate or modify the award. Id. And the appellate court’s review of an arbitrator’s award is confined to the same scope as the trial court’s review. Expert Drywall, Inc. v. Ellis-Don Constr., Inc., 86 Wn. App. 884, 888, 939 P.2d 1258 (1997).

Accordingly, we will not review the substantive merits of the arbitration award. Davidson, 135 Wn.2d at 119. And, ordinarily, reviewing courts will not reconsider the evidence before the arbitrator. Id. At most, this court can vacate, modify, or correct the award in accordance with a narrow set of circumstances set forth in RCW 7.04.160 and .170. Anderson v. Farmers Ins. Co. of Wash., 83 Wn. App. 725, 733, 923 P.2d 713 (1996). The Trust contends these limited statutory circumstances do not apply here. Instead, it asks this court to do what it cannot do, look beyond the face of the award to determine if it is entitled to more damages. Id.

Even if this court reviewed the award under the confines of chapter 7.04 RCW, the Trust would not prevail. There was no apparent procedural flaw in the record, such as corruption, impartiality, misconduct, or abuse of power, allowing this court to vacate the award under RCW 7.04.160. Nor does the record reflect the type of clerical error allowing this court to modify or correct the award under RCW 7.04.170. To change the award in the manner the Trust desires would require this court to impermissibly conduct a de novo review of the basis for the award. See Davidson, 135 Wn.2d at 121. In any event, as noted above, this court ordinarily will not review the validity of the arbitration award as it was raised for the first time on appeal. RAP 2.5(a). In sum, we decline to review the arbitrator’s specific damage award.

[398]*398B. Dismissal Without Confirmation

The issue is whether, under the facts indicating tender of payment prior to confirmation hearing, the trial court erred in dismissing the complaint with prejudice instead of confirming the arbitration award.

Because this issue requires some interpretation of chapter 7.04 RCW, review is de novo. State v. Azpitarte,

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Bluebook (online)
44 P.3d 938, 111 Wash. App. 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenneth-w-brooks-trust-a-v-pacific-media-llc-washctapp-2002.