Strain-Japan R-16 School District v. Landmark System, Inc.

51 S.W.3d 916, 2001 Mo. App. LEXIS 1361, 2001 WL 909119
CourtMissouri Court of Appeals
DecidedAugust 14, 2001
DocketED 78719
StatusPublished
Cited by8 cases

This text of 51 S.W.3d 916 (Strain-Japan R-16 School District v. Landmark System, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Strain-Japan R-16 School District v. Landmark System, Inc., 51 S.W.3d 916, 2001 Mo. App. LEXIS 1361, 2001 WL 909119 (Mo. Ct. App. 2001).

Opinion

GARY M. GAERTNER, P.J.

Appellant, Landmark Systems, Inc. (“Landmark”), appeals from the judgment of the Circuit Court of Franklin County granting summary judgment in favor of respondent Strain-Japan R-16 School District (“District”). We affirm.

In February 1995, District entered into a construction contract with Landmark for building additions to the school. According to Article 4 of the contract, the total contract price was $202,960. The parties, at the request of District in its invitations for bids, used Standard Contract Form A101 from the American Institute of Architects. The contract provided that “any controversy or claim arising out of or related to the Contract, or the breach thereof, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association.” General Condition of the Contract for Construction, AIA Document A201, sub-paragraph 4.5.1.

District withheld $72,809.60 from final payment of the contract claiming defective work by Landmark. On February 22, 1996, Landmark filed a demand for arbitration pursuant to the contract to recover the remaining $72,809.60, plus interest since November 30, 1995. District then filed a petition for a stay of the arbitration and a declaratory judgment in the Circuit Court of St. Louis County that the contract was unenforceable. District claimed the contract was unenforceable because Landmark had entered into a contract to render professional engineering and architectural services without being registered as an architect or professional engineer. Landmark, through its answer, sought only to declare that the contract was valid and enforceable and did not counterclaim to compel arbitration. Landmark also requested costs but did not ask for attorney’s fees.

A temporary restraining order to prevent the arbitration from going forward was granted on July 2, 1996. The Circuit Court of St. Louis County entered its judgment on December 16, 1996 declaring the contract enforceable, dissolving the *919 temporary restraining order, and granted costs to Landmark. District then appealed to this Court. We affirmed the decision of the trial court on February 10, 1998, holding that the contractor, by subcontracting with professional engineers, did not “render” professional engineering services in violation of the contract. Strain-Japan R-16 School Dist. v. Landmark Systems, Inc., 965 S.W.2d 278 (Mo.App. E.D.1998).

Prior to the arbitration, Landmark amended its demand for arbitration to include a claim for attorney’s fees arising out of the litigation. Landmark did not seek attorney’s fees for the arbitration itself, only the prior litigation. District filed a demand opposing the award of attorney’s fees. The case was arbitrated on August 17 and 18, 1999. The arbitrator awarded Landmark the remaining contract price of $72,809 minus the costs District incurred in replacing the concrete slab and repairing defective doors ($42,040), plus interest of $9,910 from October 30,1995 to June 30, 1999. The arbitrator also awarded legal fees to Landmark in the amount of $41,530 for the period of October 30, 1995 to July 22, 1998. The arbitrator did not provide reasoning for the award of attorney’s fees. The total amount Landmark received from the arbitrator’s award was $82,530.

Subsequent to the arbitrator’s award, District filed a Petition to Modify and Vacate in the Circuit Court of Franklin County contesting only the arbitrator’s award of attorney’s fees. The trial court judge granted District’s Motion for Summary Judgment on September 29, 2000, vacating the arbitrator’s award of attorney’s fees. This appeal followed.

Appellate review of a motion for summary judgment is essentially de novo. ITT Commercial Finance v. Mid-Am. Marine, 854 S.W.2d 371, 376 (Mo.banc 1993). Appellate courts review the record in the light most favorable to the party against whom judgment was entered. Id. Rule 74.04(c)(3) provides that summary judgment is proper if there is no genuine issue as to any material fact and if the moving party is entitled to judgment as a matter of law.

Landmark concedes in its brief there are no genuine issues of material fact, so the sole question is whether District was entitled to summary judgment as a matter of law. Rule 74.04(c). Landmark also asserts error in the denial of its motion for summary judgment and asks this court to review the denial of its motion. The denial of summary judgment is not final, and therefore generally not reviewable on appeal. Reben v. Wilson, 861 S.W.2d 171, 175 (Mo.App. E.D.1993). This is true even if the denial of the summary judgment is alleged contemporaneously with the granting of summary judgment in favor of the other party. OLeary v. Luedde, 19 S.W.3d 702, 704 (Mo.App. E.D. 2000). We do not find the circumstances in the present case to warrant review, and therefore decline to review the trial court’s denial of Landmark’s Motion for Summary Judgment.

Judicial review of an arbitrator’s award is limited. R.L. Hulett & Co. v. Barth, 884 S.W.2d 309, 311 (MoApp. E.D. 1994). Both the United States Congress, through the Federal Arbitration Act (“FAA”), and the Missouri General Assembly, through the Missouri Uniform Arbitration Act (“MUAA”), have enacted arbitration legislation. The FAA applies when a contract involves interstate commerce. 9 U.S.C. Section 2 (1994); Duggan v. Zip Mail Services, Inc., 920 S.W.2d 200, 202 (Mo.App. E.D.1996). The FAA will apply even when all parties to the contract are Missouri residents if any materials are supplied by vendors outside of the state. Edward D. Jones & Co. v. Schwartz, 969 *920 S.W.2d 788, 793 (Mo.App. W.D.1998). In the present appeal, the pre-fabricated metal building was purchased from Nucor Building Systems, doing business in the State of Indiana, and shipped to Missouri. Thus, the FAA applies in this appeal.

Missouri courts are to apply federal law and may not apply substantive or procedural state law which is in derogation of federal law. Reis v. Peabody Coal Co., 935 S.W.2d 625, 630 (Mo.App. E.D.1996). Missouri courts are not bound by the procedural provisions of the FAA so long as Missouri’s procedures do not defeat the rights granted by Congress. Id.

The statutory basis for vacating an arbitrator’s award is found in Section 10 of the FAA. The grounds for vacating an arbitrator’s award include: “where the arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final and definite award upon the subject matter submitted was not made.” ' 9 U.S.C.

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51 S.W.3d 916, 2001 Mo. App. LEXIS 1361, 2001 WL 909119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strain-japan-r-16-school-district-v-landmark-system-inc-moctapp-2001.