Letke Security Contractors, Inc. v. United States Surety Co.

991 A.2d 1306, 191 Md. App. 462, 2010 Md. App. LEXIS 47
CourtCourt of Special Appeals of Maryland
DecidedMarch 29, 2010
Docket02038, September Term, 2008
StatusPublished
Cited by7 cases

This text of 991 A.2d 1306 (Letke Security Contractors, Inc. v. United States Surety Co.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Letke Security Contractors, Inc. v. United States Surety Co., 991 A.2d 1306, 191 Md. App. 462, 2010 Md. App. LEXIS 47 (Md. Ct. App. 2010).

Opinion

IRMA S. RAKER, J., Retired, specially assigned.

This dispute arises out of a voluntary, non-judicial, binding arbitration held in Maryland pursuant to the parties’ agreement to arbitrate. The arbitrator issued an award in favor of appellee, United States Surety Company (hereinafter USSC). Appellant Letke Security Contractors (hereinafter Letke), a construction subcontractor, appeals from the order of the Circuit Court for Baltimore City confirming the arbitration award in favor of appellee, USSC. Appellant asks this Court to reverse the order of the circuit court denying Letke’s petition to vacate the arbitration award pursuant to the provisions of the Maryland Uniform Arbitration Act (hereinafter MUAA), Maryland Code (1974, 2006 Repl. Vol., 2009 Cum. Supp.), Courts and Judicial Proceedings Article, §§ 3-201 el seq. 1 We shall affirm the judgment of the Circuit Court for Baltimore City denying appellant’s petition to vacate the arbitration award and affirming the award.

I.

This case arises from a public construction project on the City of Baltimore’s Black River Wastewater Treatment Plant. Letke acted as a subcontractor for the principal contractor, Shaney Construction Company (hereinafter Shaney). Under Maryland’s “Little Miller Act,” Maryland Code (1985, 2006 Repl. Vol., 2008 Cum. Supp.), State Finance and Procurement Article, §§ 17-101 el seq., Shaney was required to secure the payment of its obligations to its subcontractor by obtaining a performance and payment bond. Shaney contracted with USSC for those bonds.

*466 For reasons not germane to this litigation, the relationship between appellant and Shaney Construction Company came to an early end. The parties agreed to arbitrate the matter before Robert M. Wright, Esq. On August 6, 2007, the arbitrator conducted a conference call to set administrative deadlines and the date of the arbitration hearing. Both parties were represented by counsel, and Letke, through counsel, agreed to the dates of January 3 and 4, 2008, for the hearing.

On October 31, 2007, appellant’s counsel withdrew from the case. Letke’s counsel requested Shaney to consent to a postponement of the hearing if new counsel needed it, and Shaney agreed. No new counsel entered an appearance in the case. There was no further communication on this topic until December 21, 2007, thirteen days before the scheduled merits hearing. Shaney wrote to the arbitrator to determine whether Letke would be retaining counsel; whether Letke would be permitted to proceed pro se; whether Letke would meet the December 28, 2007, deadline for the exchange of witness lists and exhibits; and whether the hearing would proceed as scheduled on January 3 and 4, 2008. At that time, Shaney was still willing to agree to a postponement, and stated in its letter as follows:

“[I]f the arbitration is to be postponed, we would ask that we make a decision in that regard without further delay. While we remain willing to extend courtesies to opposing counsel with regard to the scheduling of the date, this case needs to come to a resolution within a reasonable time.”

The letter further read in relevant part as follows:

“As you may recall, on October 31, 2007, Louis J. Kozlakowski, Jr., Esquire notified you that he was no longer serving as legal counsel for the Claimant.... Nearly 60 days have passed since Mr. Kozlakowski’s letter and no new counsel has yet entered their appearance for the Claimant.... While Shaney is prepared to proceed with this case and meet [the January 3 and 4] deadlines, when Mr. Kozlakowski advised that he was stepping out of this case he asked that Shaney agree to a postponement of the hearing dates *467 once Letke secured new counsel. As a matter of courtesy and professionalism, we agreed to Mr. Kozlakowski’s request. Of course, at the time Shaney did so it expected Letke would secure new counsel in a reasonable time. At this point, we need to know what the Claimant intends to do with this case.”

In response to appellee’s letter, the arbitrator contacted appellant, and on December 21, Kimberly Letke responded with a letter on behalf of her company, which was faxed to both appellee and the arbitrator. The letter stated in relevant part:

“I believe I have secured counsel.
I still intend to proceed with the Arbitration on January 3, 2008. If the attorney to whom I believe will take the case is away til January 2, 2008. If [he] does not enter his appearance, then I have the right to represent my business, Letke Security Contractors, Inc. Therefore, so we do not delay I will forward you and Mr. Bob Wright the exhibits.... ”

On the same day, the arbitrator responded to Ms. Letke’s letter, confirming that Ms. Letke would be permitted to represent her company without counsel, at her election.

On December 28, Ms. Letke sent a letter to the arbitrator requesting a postponement of the January 3, hearing, arguing that she did not receive appellee’s exhibits until 6:30 p.m. on December 28, after the agreed upon deadline of 5:00 p.m. Ms. Letke further argued that appellant’s new attorney would not have time to review the case. The attorney had not entered an appearance on behalf of appellant, and this December 28 communication was the first indication of any plan for him to represent appellant. Appellee opposed Ms. Letke’s request, arguing that it had incurred expenses in preparation for the early January hearing. The arbitrator denied the postponement request, ruling as follows:

“With regard to the most recent postponement request, there has yet to be any entry of appearance or other indication from Mr. Baker that he desires to represent *468 Letke. As to any agreement by [appellee] with [appellant’s outgoing counsel] to postpone the hearings at the request of new counsel, that obviously assumed an engagement of new counsel within a reasonable period of time so that the proceedings would not be unduly delayed. A reasonable time has long since passed. A fundamental premise of an agreement to arbitrate is the speedy resolution of disputes. In light of all of the above, the Hearings will commence on Thursday, January 3, 2008 as scheduled.... ”

The hearings occurred according to the original schedule, on January 3 and 4, 2008, with all parties present and participating. Ms. Letke appeared at the hearing, made arguments, provided testimony, introduced documents, and cross-examined witnesses.

On January 23, 2008, the arbitrator issued an award in favor of USSC, mailing it to the parties by regular mail. Appellant sent an undated letter to the arbitrator, seeking “reconsideration” of the award. 2 The letter was postmarked February 19 and received by the arbitrator on February 21, 2008.

On May 16, 2008, appellee filed a motion in the Circuit Court for Baltimore City to confirm the arbitration award and for entry of judgment in its favor.

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Bluebook (online)
991 A.2d 1306, 191 Md. App. 462, 2010 Md. App. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/letke-security-contractors-inc-v-united-states-surety-co-mdctspecapp-2010.