Ultra Resources, Inc. v. McMurry Energy Co.

2004 WY 121, 99 P.3d 959, 2004 Wyo. LEXIS 163, 2004 WL 2387607
CourtWyoming Supreme Court
DecidedOctober 27, 2004
Docket03-216
StatusPublished
Cited by17 cases

This text of 2004 WY 121 (Ultra Resources, Inc. v. McMurry Energy Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ultra Resources, Inc. v. McMurry Energy Co., 2004 WY 121, 99 P.3d 959, 2004 Wyo. LEXIS 163, 2004 WL 2387607 (Wyo. 2004).

Opinion

GOLDEN, Justice.

[T1] Ultra Resources, Inc. ("Ultra") appeals a district court order confirming an arbitration award. The district court confirmed the arbitration award ruling the parties had agreed, in a settlement agreement, that the outcome of the arbitration proceeding would be binding and non-appealable. The district court also ruled that Ultra failed to prove by clear and convincing evidence the merits of its motion to vacate the arbitration award. On appeal, Ultra only argues that, on the merits, the arbitration award should have been vacated. Since Ultra does not designate as an issue on appeal the disposi-tive ruling of the district court that the settlement agreement precludes further judicial review, we will dismiss this appeal.

ISSUES

[12] Ultra presents one issue for review by this Court:

[Slhould the trial court have vacated the arbitration award submitted to it for confirmation because the arbitration panel manifestly disregarded settled Wyoming law by writing a contract for the parties that they did not make?

McMurry Energy Company and the other appellees (hereinafter collectively referred to as "MecMurry") divide Ultra's one issue into several issues:

*961 1. Whether the appeal is moot because Appellant Ultra Resources, Inc. ("Ultra") has failed to challenge the District Court's determination that Ultra contractually waived its right to appeal the arbitration decision?
2. If Ultra's appeal here is not moot, whether the District Court correctly entered judgment and confirmed the arbitration award on the grounds that Ultra and its co-defendant Lance Oil & Gas Company ("Lance") had waived any right to appeal the ruling of the arbitration panel?
3. Whether Ultra's additional agreement not to appeal the District Court's judgment should be enforced, and this appeal dismissed?
4. Whether the District Court's judgment confirming the arbitration award and denying Ultra's application to vacate should be affirmed on the grounds that Ultra's appeals are nothing more than an attempt to relitigate the merits of the dispute that were decided by the arbitrators?

FACTS

[T3] For contextual purposes, we include the following limited factual background. Ultra and McMurry entered into a Farmout Agreement in 1996. Various disputes arose and, in 2000, McMurry sued Ultra in Wyoming district court. Ultimately, the parties, within the framework of the ongoing litigation, entered into a settlement agreement. Certain issues remained outstanding so as part of the settlement agreement the parties included a provision that required the remaining issues be resolved by binding arbitration. Ultra is not satisfied with the arbitration award and has refused to accept the award as binding. McMurry moved the district court for enforcement of the settlement agreement and confirmation of the award, while Ultra moved the district court to vacate the award. The district court determined that the parties had agreed to binding arbitration in their settlement agreement and therefore granted MeMurry's motion to enforce the settlement agreement and confirm the arbitration award. The district court denied Ultra's motion to vacate the arbitration award on the grounds that Ultra had voluntarily, contractually relinquished any right of judicial review of the award. The district court also held that Ultra had failed to adequately prove the existence of any grounds justifying the vacation of the arbitration award. Ultra has appealed the order of the district court to this Court.

[14] -After Ultra filed its notice of appeal, McMurry filed with this Court a motion to dismiss the appeal. McMurry argued that Ultra, pursuant to the settlement agreement, contractually had waived its right to appeal both the award to the district court and the district court order to this Court. This Court denied the motion to dismiss without prejudice. The appeal was then briefed and argued.

DISCUSSION

[15] The order of the district court being appealed in pertinent part states:

1. In the November 2, 2001 Mutual Release and Settlement Agreement ("Settlement Agreement") the parties in this case agreed to submit all of their unresolved disputes to binding arbitration. They stated that it was their intent that the decision of the Arbitration Panel-which was appointed by the parties-would fully and finally resolve all of the disputed claims, and that the arbitration decision would be binding upon the parties and could not be appealed. Defendants are bound by this agreement....
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3.... Plaintiffs and Defendants agreed in their Settlement Agreement that there would be no further proceedings in this case except for the right of a party to file a motion to enforee the arbitrator's decision. Plaintiffs' Motion for Confirmation of Arbitration Award is consistent with the Settlement Agreement, and is hereby GRANTED. The January 29, 2008 Arbitration Award is hereby confirmed and entered as a final Judgment and Order of this Court. 4. Defendants' Applications to Vacate Arbitration Award are DENIED on the grounds that Defendants have contractually waived any right to contest the arbitration award found in the Arbitrator's *962 January 29, 2008 Opinion. Furthermore, Defendants have failed to prove by clear and convincing evidence the grounds on which they seek to vacate the award; namely, that the arbitration award contains a manifest mistake of fact or law appearing on the face of the award. Defendants have not alleged any other grounds for challenging the award. Having committed their disputes to binding arbitration, this Court will not review the merits of the decision of the arbitrators, which is what Defendants seek.

The order reflects that the district court offered two alternative reasons for denying Ultra's motion to vacate the arbitration award. In paragraph four the district court states that it did consider the merits of ULtra's motion to vacate and determined that Ultra did not adequately prove a manifest mistake of law or fact appearing on the face of the award. The district court also grounded its ruling upon the language of the settlement agreement, finding that Ultra had agreed to binding arbitration that would fully and finally resolve all disputed claims between the parties.

[T6] Ultra's sole issue on appeal regards the merits of the denial of its motion to vacate. In its reply brief, Ultra admits that the district court held that Ultra was contractually precluded from seeking judicial review of the arbitration award. Ultra also admits that it deliberately ignored this holding in designating and arguing its issues in its opening brief: "Ultra's principal brief focused exclusively on the arbitration majority's manifest disregard of Wyoming law. Appellees correctly point out that the trial court also cited the parties' agreement not to appeal as an alternative reason for its rul-H tH ing.

[T7] Rule 7.01 of the Wyoming Rules of Appellate Procedure requires an appellant to include in its opening brief a statement of the issues presented for review. W.R.A.P. 7.01(d). Rule 7.01(f), W.R.A.P., requires an appellant to present argument on every issue it is requesting this Court to review on appeal.

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Bluebook (online)
2004 WY 121, 99 P.3d 959, 2004 Wyo. LEXIS 163, 2004 WL 2387607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultra-resources-inc-v-mcmurry-energy-co-wyo-2004.