Peter Kiewit Sons' Co. v. Port of Portland

628 P.2d 720, 291 Or. 49, 1981 Ore. LEXIS 839
CourtOregon Supreme Court
DecidedMay 27, 1981
DocketNO A8005-02667, CA 18146, SC 27607
StatusPublished
Cited by17 cases

This text of 628 P.2d 720 (Peter Kiewit Sons' Co. v. Port of Portland) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peter Kiewit Sons' Co. v. Port of Portland, 628 P.2d 720, 291 Or. 49, 1981 Ore. LEXIS 839 (Or. 1981).

Opinions

[51]*51TONGUE, J.

The question to be decided in this case is whether an order directing the parties to proceed to arbitration in accordance with the terms of a contract is an appealable order.

Petitioner Peter Kiewit Sons’ Co. (Kiewit) filed a “petition for order directing arbitration” pursuant to ORS 33.230,1 alleging that a construction contract between it and respondent Port of Portland (Port) provided that any controversy between the parties arising out of the contract shall be submitted to arbitration according to the provisions of ORS 33.210 et seq; that claims by it against the Port totaling $4,000,000 had been denied by the Port, and that the Port had refused to submit the resulting controversy to arbitration. The petition prayed for an order directing the parties to proceed with arbitration in accordance with the terms of the contract.

The “response” by the Port admitted the making of the contract, including the provision for arbitration of any controversy arising under it, but denied the remainder of the foregoing allegations, except “as it alleges that [52]*52Respondent has refused to appoint an arbitrator.” The response also alleged affirmative defenses, on which it demanded a jury trial, to the effect that a previous claim by Kiewit for $1,220,102 had been submitted to arbitration; that subsequent claims by Kiewit had been rejected by the Port on the ground that they were “merged” into the arbitration award on the first claim, and that under the doctrine of res judicata that award “constituted a full and complete settlement of all matters that were or could have been raised by that claim,” with the result that “there is nothing left between the parties to arbitrate.”

A hearing was then held in the Circuit Court for Multnomah County on the petition of Kiewit and the response by the Port. That court, after considering the pleadings and argument of the parties and after finding that “the making of the contract, and the failure to comply therewith are not an issue,” ordered that “the parties hereby are directed to proceed to arbitration in accordance with the terms of their contract * * *.”

A notice of appeal was filed by the Port to the Court of Appeals from that order. A motion to dismiss that appeal was then filed by Kiewit, contending that the order by the circuit court was not an appealable order. The Court of Appeals denied that motion (49 Or App 1005, 621 P2d 642 (1980)), holding that the order was an appealable order. Kiewit then filed with this court a petition for review of that decision. We allowed that petition because this question is one of importance and one of first impression with this court.

The principal contentions by Kiewit in support of its petition for review can be briefly summarized as follows:

(1) A party to a contract which requires arbitration for all controversies arising under it and who seeks to avoid arbitration may either:
(a) Refuse to arbitrate and file an action for damages or other relief, thus submitting the controversy to a court for decision.
(b) Refuse to arbitrate the controversy without filing such an action.
(2) In the event that the recalcitrant party files such an action, the. other party to the contract may make an [53]*53application under ORS 33.240 requesting the circuit court to enter an order abating that action so that the arbitration may be had without further delay in accordance with the terms of the agreement.2 Such an order has been held by this court to be not an appealable order in Jackson v. Penny Duquette Knits, 276 Or 465, 555 P2d 201 (1976).
(3) This being so, it would be incongruous for this court to hold that if, as in this case, the recalcitrant party refuses to arbitrate, but does not file such an action, forcing the other party to make application to the circuit court under ORS 33.230 for an order directing the parties to proceed with the arbitration, such an order is an appealable order, thus forcing a delay of the arbitration proceeding until that appeal can be heard and decided.

The principal contentions to the contrary by the Port were summarized by it as follows:

(1) “Persuasive federal authority supports the proposition that such an order is appealable because petitioner has obtained full relief and no further matter is pending before the trial court.”
(2) “A petition to compel arbitration must be distinguished from the separate statutory proceeding to obtain an order to stay existing litigation pursuant to ORS 33.240 pending arbitration while the litigation remains before the Court. An appeal from the latter can be taken at the conclusion of the litigation.”

1. The Oregon Arbitration Statutes and Cases.

At common law, the courts refused to enforce agreements to arbitrate controversies upon the ground that such agreements unlawfully ousted the courts from jurisdiction.3 Statutes were then enacted to authorize [54]*54arbitration agreements and to provide for their enforcement by the courts. In 1924 the Supreme Court of the United States sustained the validity of such a statute.4

The first Oregon arbitration statute was adopted in 1925 (1925 Or Laws ch 186). That statute authorized arbitration agreements and provided for the enforcement of arbitration awards by authorizing entry of judgments on such awards after exceptions on limited grounds. Such judgments were “subject to appeal to the same extent as if said judgment had been obtained after trial by a court of law.” (1925 Or Laws ch 186, §§ 1, 2, 5, 7 and 9.) Although that statute (Sec 3) authorized courts to abate suits “brought upon any issues arising out of’ an agreement to arbitrate (as under ORS 33.240), it did not authorize courts to issue orders directing parties to proceed with arbitration (as under ORS 33.230).

In 1929, however, that statute was amended to provide, among other things, for orders “directing the parties to proceed to arbitration” in terms substantially similar to those now provided by ORS 33.230, after a minor amendment in 1979 (See 1929 Or Laws ch 350 § 2(b) and 1979 Or Laws ch 284 § 68). The 1929 statute also amended the provision relating to appeals from judgments entered on arbitration awards in terms substantially similar to those now provided by ORS 33.340.

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Peter Kiewit Sons' Co. v. Port of Portland
628 P.2d 720 (Oregon Supreme Court, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
628 P.2d 720, 291 Or. 49, 1981 Ore. LEXIS 839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peter-kiewit-sons-co-v-port-of-portland-or-1981.