Trustees of Asbury United Methodist Church v. Taylor & Parrish, Inc.

33 Va. Cir. 532, 1992 Va. Cir. LEXIS 545
CourtChesterfield County Circuit Court
DecidedFebruary 12, 1992
DocketCase No. CH90-1686
StatusPublished

This text of 33 Va. Cir. 532 (Trustees of Asbury United Methodist Church v. Taylor & Parrish, Inc.) is published on Counsel Stack Legal Research, covering Chesterfield County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of Asbury United Methodist Church v. Taylor & Parrish, Inc., 33 Va. Cir. 532, 1992 Va. Cir. LEXIS 545 (Va. Super. Ct. 1992).

Opinion

By Judge Herbert C. Gill, Jr.

After due consideration of counsel’s arguments at the February 19, 1992, hearing in this matter, the Court is of the opinion that Plaintiff’s Motion for Injunction should be denied, and accordingly, defendant’s Application to Stay Proceeding and to Compel Arbitration should be granted.

The contract entered into by the parties on November 16, 1988, contains a broad arbitration clause which encompasses “all claims, disputes and other matters in question between the Contractor and the Owner arising out of, or relating to, the Contract Documents or breach thereof . . . .” (Paragraph 7.9.1 of contract.) The parties agreed to the wide-reaching arbitration clause when they entered into the contract.

The parties further agreed in the contract that all claims subject to arbitration shall be decided in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. (Paragraph 7.9.1 of contract.)

Rule 8 of the Construction Industry Arbitration Rules provides that a new or different claim may be submitted with the appointed arbitrator’s consent. In this case, Arbitrator Brown has given his consent to the filing of an Amended Demand on behalf of the defendant. Rule 8 does not, however, address when a new or different claim may be submitted. Since the arbitrator has given his consent to the submission of a new or [533]*533different claim, such claim should be heard by the arbitrator in his discretion and interpretation of Rule 8.

Further, although defendant’s original Demand for Arbitration did not include the issue of quantum meruit, defendant did allege a breach of contract by plaintiff. Defendant’s Amended Demand again alleges a breach of contract by plaintiff, among other allegations. Breach of contract has not been addressed by the arbitrator.

The issues included in defendant’s Amended Demand are arbitrable; therefore, the Court hereby grants defendant’s Application to Stay Proceeding and to Compel Arbitration.

October 13, 1993

The parties were before the Court on September 9, 1993, upon plaintiff’s motion to confirm in part and vacate in part an arbitration award entered March 26, 1993, awarding defendant the sum of $263,310.97 plus interest until paid. The defendant is moving to confirm the March 26, 1993, award and to have the Court enter judgment on the award. A brief summary of the facts is necessary.

Plaintiff and defendant entered into a contract on November 16, 1988, for the construction of a new sanctuary and education building in Chesterfield County. The contract incorporated, among other things, the general conditions of the Contracts for Construction prepared by the American Institute of Architects. Such general conditions provided that the contract sum and the contract time may be amended only pursuant to a “change order.” The general conditions also contained a broad arbitration clause.

The only disagreement between the parties concerns the validity of a change order executed subsequent to the date of the original contract. Pursuant to the arbitration clause in the contract, the Court ordered the parties to arbitrate this disagreement on March 22, 1991. On August 19, 1991, an arbitrator ruled that the change order was unenforceable. This Court confirmed the arbitrator’s decision in an order entered January 7, 1992. On April 10, 1992, the Court ordered the parties to return to arbitration and to arbitrate the issue of whether defendant could recover on a quantum meruit basis. After six days of hearings, the arbitrator, in a ruling dated March 26, 1993, awarded defendant the sum of $263,310.97.

[534]*534The plaintiff asserts that the March 26, 1993, award should be vacated for the following reasons:

1. The contract between the parties did not give the arbitrator the authority to rule on the quantum meruit issue;

2. The arbitrator exceeded the scope of this authority;

3. The arbitrator was biased; and

4. The arbitrator grossly misapplied the law of Virginia.

Plaintiff initially argues that the contract between plaintiff and defendant did not give the arbitrator the authority to rule on the quantum meruit issue. In support of this argument, plaintiff cites a number of Virginia Supreme Court decisions for the proposition that there can be no recovery based on quantum meruit where a valid, express contract between the parties exists. Plaintiff further argues that the arbitrator, in making an award based on quantum meruit, necessarily must have concluded that no valid express contract between the parties existed. Since no valid contract existed, plaintiff argues, the arbitration clause is of no effect and the arbitrator had no power to make his award.

Yet, the parties agree that the construction contract between plaintiff and defendant dated November 16, 1988, is binding. See plaintiff’s Motion for Declaratory Judgment and defendant’s Application to Compel Arbitration. This contract contains an arbitration clause which specifically provides that “[a]ll claims, disputes, and other matters in question between the contractor and the owner arising out of, or relating to, the contract documents or the breach thereof . . . shall be decided by arbitration.”

The language of the arbitration clause quoted above indicates an agreement with broad reach as to arbitrable issues. See Heritage Washington Street Corp. v. Construction Management Systems, Inc., 5 Va. Cir. 267, 269 (Alexandria, 1985). Further, as the Virginia Supreme Court has stated, “[b]oards of arbitration, which are courts of the parties’ own selection, are favored by the law, and every fair presumption is made in order to sustain their award. This, we believe, is the universal rule applied to the interpretation of the agreement to submit [to arbitration].” Martin v. Winston, 181 Va. 94, 106 (1943), cert. denied, 319 U.S. 766 (1943), quoting Coons v. Coons, 95 Va. 434, 438 (1897).

The Court finds that the quantum meruit issue arises out of, or relates to, the contract between the plaintiff and defendant. Therefore, the quantum meruit issue was subject to arbitration and was properly before the arbitrator.

[535]*535The plaintiff next argues that the arbitrator exceeded the scope of this authority. Plaintiff claims that the letter opinion, dated February 12, 1992, grants the arbitrator the authority to hear only the breach of contract issue. Plaintiff misinterprets the February 12, 1992, letter opinion, however. Such letter opinion specifically states that “[t]he issues included in defendant’s Amended Demand are arbitrable.” Since defendant’s Amended Demand contains a claim for quantum meruit, the quantum meruit issue was properly before the arbitrator and the arbitrator did not exceed the scope of this authority.

The plaintiff next argues that the arbitrator was biased. Plaintiff complains about a number of the arbitrator’s decisions and statements. Plaintiff claims that such decisions and statements indicate that the arbitrator was biased. Based on the argument of counsel and the evidence presented, the Court finds that plaintiff has failed to prove that there was evident partiality by the arbitrator. Va. Code § 8.01-581.010.

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Cite This Page — Counsel Stack

Bluebook (online)
33 Va. Cir. 532, 1992 Va. Cir. LEXIS 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-asbury-united-methodist-church-v-taylor-parrish-inc-vaccchesterfiel-1992.