S & S Const., Inc. v. Adc Properties LLC

211 P.3d 415
CourtCourt of Appeals of Washington
DecidedJuly 21, 2009
Docket37092-1-II
StatusPublished
Cited by9 cases

This text of 211 P.3d 415 (S & S Const., Inc. v. Adc Properties LLC) 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
S & S Const., Inc. v. Adc Properties LLC, 211 P.3d 415 (Wash. Ct. App. 2009).

Opinion

211 P.3d 415 (2009)

S & S CONSTRUCTION, INC., a Washington corporation, Appellant,
v.
ADC PROPERTIES LLC, a Washington limited liability company; Himanshu Nigam, an individual; Chan Han, an individual; Community Property of Himanshu Nigam and Zanqetta Nigam; Community Property of Chan Han and Kathy Han; and Does 1-10, Respondents.

No. 37092-1-II.

Court of Appeals of Washington, Division 2.

April 28, 2009.
Publication Ordered July 21, 2009.

*417 Jami K. Elison, Marston Elison PLLC, Redmond, WA, for Appellant.

Rhys Matthew Farren, Davis Wright Tremaine LLP, Bellevue, WA, for Respondent(s).

PENOYAR, A.C.J.

¶ 1 S & S Construction, Inc. (S & S) appeals a superior court order affirming an arbitration award. S & S claims that the award should be vacated because (1) the arbitrator lost authority to make an award beyond the 30-day deadline, (2) the arbitrator failed to disclose important professional relationships, and (3) the award contains facial errors. We agree with the superior court and affirm the award.

FACTS

¶ 2 ADC Properties, LLC, a group of dentists in Puyallup, hired S & S to build a dental clinic. Disagreement arose as to the amount owed to S & S and in May 2006, S & S sued ADC for the alleged remaining amount.

¶ 3 Given the dispute resolution clause in the construction contract, the trial court ordered the parties to engage in mediation and arbitration to resolve their dispute. The dispute resolution clause stated that "arbitration shall be pursuant to the current Construction Industry Arbitration Rules of the American Arbitration Association unless the parties mutually agree otherwise...." Clerk's Papers (CP) at 389. Though the contract called for the parties to file requests for mediation and claims for arbitration with the American Arbitration Association (AAA), the parties deviated from this procedure and mutually selected their own mediators and arbitrators.

¶ 4 ADC's counsel submitted a list of mediators to S & S. Stew Cogan was on the list, and ADC's counsel informed S & S that he had used "Cogan for mediations" in the past. CP at 271. The parties did not select him for the mediation.

¶ 5 The initial planned mediation fell through and S & S's counsel requested that the parties proceed immediately to arbitration. S & S proposed five potential arbitrators, including Stew Cogan. After another unsuccessful mediation attempt in January 2007, the parties agreed on Cogan as an appropriate arbitrator and the case was quickly set for arbitration pursuant to a court order requiring arbitration before March 30, 2007.

I. The Arbitration Process

¶ 6 The arbitration hearing started March 27, 2007, at Davis Wright Tremaine's offices in Bellevue.[1] The hearing lasted three and a half days, concluding with closing arguments on April 5, 2007. Cogan heard testimony from 12 witnesses and considered nearly 150 exhibits (comprising 500-1,000 documents), together with photographic exhibits, video footage, blueprints, schematics, and demonstrative exhibits. At the close of the hearing, both parties requested a "reasoned decision" from Cogan rather than a simple verdict and monetary award. CP at 82.

¶ 7 Cogan was to make his award, per ADC and S & S's contract terms, within 30 days of the conclusion of the arbitration hearing. S & S presented a stipulated order to the trial court on two occasions, May 3, 2007, and June 6, 2007, to allow additional "time for the arbitrator to render an arbitration award." CP at 5, 12. On June 25, 2007, Cogan issued a 20-page memorandum decision *418 that was not an official award but was a detailed document explaining his findings and reasoning on issues presented to him during the arbitration.

¶ 8 On June 29, S & S filed a written objection to the arbitration proceeding alleging that (1) Cogan had lost authority to issue an award because it was not filed within 30 days of the end of the hearing, and (2) Cogan failed to disclose the extent of his relationship with ADC's counsel "until the conclusion of the hearing." CP at 139. S & S made other objections between June 29 and September 28, 2007, the date Cogan submitted his final arbitration award. Cogan responded to each of S & S's objections, overruling them and declining to withdraw as the arbitrator.

¶ 9 On October 26, 2007, S & S filed a motion to vacate the arbitration award with the superior court. S & S argued that the award should be vacated because (1) Cogan did not make the award within the 30-day deadline, (2) Cogan failed to make "reasonable disclosures regarding his relationship to parties and counsel for represented parties," and (3) the award contained facial errors. CP at 66. After oral argument and reviewing numerous declarations, the trial court denied S & S's motion to vacate the award. This appeal follows.

II. Disclosures Made by Cogan

¶ 10 It is undisputed that Cogan started the arbitration hearing by informing those present that he had served as a mediator for ADC's counsel in the past, he had not worked with S & S's counsel before, and he had worked for the predecessor law firm to Davis Wright Tremaine many years earlier. S & S did not question or object to this information but, instead, proceeded with the arbitration.

¶ 11 S & S maintains that it did not know of Cogan's prior affiliation with Davis Wright Tremaine until the first day of the hearing. Further, S & S argues that it did not learn that Cogan also previously served as an arbitrator for ADC's counsel until the close of the arbitration hearing. S & S also claims that it was not made aware that Cogan had served as a mediator for a case involving Dr. Han, one of the two principal owners of ADC, until July 31, 2007.

¶ 12 S & S's recollection of events is different from ADC's. Counsel for ADC and Dr. Han both recalled Cogan disclosing his earlier mediation and arbitration experience with ADC's counsel at the start of the hearing. Further, both Dr. Han and ADC's counsel recalled Cogan disclosing his prior mediation with Dr. Han, before the hearing began.[2] Cogan had difficulty recalling exactly what he disclosed at the start of the hearing, but he believed "that disclosures were made of [his] prior employment by Davis Wright and [his] prior mediation and arbitration experience with [ADC's counsel]...."[3] CP at 311.

¶ 13 As to whether he had disclosed his previous mediation with Dr. Han, Cogan did "not have a specific recollection" of making the disclosure. CP at 311. Cogan did say that he recalled seeing Dr. Han, recognizing him, and exchanging pleasantries. Cogan believed that this encounter, in the arbitration room, "certainly could have prompted me to refer to the prior mediation during the course of [] disclosures...."[4] CP at 311. It is undisputed that all parties were made aware of Cogan's prior mediation with Dr. Han during a telephone conference on July *419 31, 2007, when Cogan raised the issue sua sponte.

¶ 14 In reviewing the motion to vacate the arbitration award on grounds that Cogan's disclosures were insufficient, the trial court disagreed, but it did not make specific findings or conclusions of law. At oral argument on the motion, the trial court made no comment on this issue beyond stating: "All right. Even considering the federal language, I am going to confirm the arbitration award." Report of Proceedings (RP) (11/9/07) at 29.

ANALYSIS

I. Arbitrator's Authority

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Bluebook (online)
211 P.3d 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-s-const-inc-v-adc-properties-llc-washctapp-2009.