Verdex Steel & Construction Co. v. Board of Supervisors

509 P.2d 240, 19 Ariz. App. 547, 1973 Ariz. App. LEXIS 592
CourtCourt of Appeals of Arizona
DecidedApril 26, 1973
Docket1 CA-CIV 1867
StatusPublished
Cited by19 cases

This text of 509 P.2d 240 (Verdex Steel & Construction Co. v. Board of Supervisors) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Verdex Steel & Construction Co. v. Board of Supervisors, 509 P.2d 240, 19 Ariz. App. 547, 1973 Ariz. App. LEXIS 592 (Ark. Ct. App. 1973).

Opinion

STEVENS, Judge.

A board of arbitrators entered two awards arising out of a single arbitration proceeding. One of the successful parties filed a suit to confirm the award and one of the defendants filed a third-party claim to confirm that portion of the award which was entered in favor of the third-party plaintiff. The award" in favor of the plaintiff was paid and is not in issue. The trial court declined to confirm the award in favor of the third-party plaintiff and this appeal followed.

The appellee, Glenn C. McCollum, is a registered architect. Through the Board of Supervisors of Maricopa County, he entered into a contract for design and other services relating to the construction of a gymnasium for the Chandler High School District. Upon the opening of the bids the appellant, Verdex Steel & Construction Company, a corporation, was awarded the construction contract which included the fabrication and erecting of steel arches. *549 The Glens Falls Insurance Company was the surety on the Verdex construction bond. Verdex awarded Bart Del Duca Masonry Contractor, Inc., a corporation, the subcontract to do the masonry work.

The McCollum-School District contract contained an arbitration clause. The Ver-dex-School District contract contained an arbitration clause in a contract drawn on the standard American Institute of Architects form. McCollum prepared the Ver-dex-School District contract but was not a signatory thereof.

On 17 October 1963, during the process of construction, three steel arches then in place above the floor of the building collapsed. Needless to say, problems arose out of this construction failure, including suits filed by three of the Verdex employees seeking damages against the School District and McCollum.

Verdex was instrumental in initiating arbitration arising out of this collapse. It designated Charles R. Magadini, a structural engineer, as its arbitrator. There was an extensive exchange of correspondence between the parties. Initially Mc-Collum took the position that there was no contractual obligation which required him to arbitrate with Verdex. The proposed arbitration date was continued from time to time. Finally upon the recommendation of W. T. Hamlin, 1 after consultation between McCollum’s attorney and the School District attorney, a second arbitrator was designated, being Robert E. Franklin of Los Angeles, a structural engineer. Together the two designated arbitrators selected Phoenix businessman Theo Jablonski as a third arbitrator. There was no writing by which McCollum expressly consented to arbitrate. His attorney was interested in the use of the arbitration proceedings as a discovery device in relation to the pending civil suits filed by the three Ver-dex employees.

The arbitration proceeding commenced on 1 November 1965 and consumed two days. Forty-seven pages of the 587-page transcript are devoted to the Del Duca claim and the balancé to the dispute between Verdex on the one hand and Mc-Collum, together with his principal, the School District, on the other. McCollum’s participation was extensive. At no time in the arbitration proceedings did he disavow that he was an active participant willing to be bound by the arbitrators’ award.

It was made clear during the arbitration proceedings that the Board of Supervisors was not a party to the arbitration proceedings.

A reading of the reporter’s transcript of the arbitration proceedings discloses a very knowledgeable and unbiased hearing. The rulings on evidence were sound. We do not have the benefit of the exhibits which were presented to the board of arbitration or the benefit of the Hamlin deposition presented to the board as it was stipulated that all documents be returned to the respective counsel after the award of the arbitrators was entered.

The unanimous award of the arbitrators recited certain fact findings and concluded:

“Claim No. 1: To Bart Del Duca Ma- ' sonry Contractor, Inc.
Against: Verdex Steel & Construction Co., and to Insurer, the Glens Falls Insurance Company with no recourse against Glenn A. McCollum and the Chandler High School District
$4,323.16
"Claim No. 2: Verdex Steel & Construction Co.
Against: The Board of Education of Chandler High School District and Glenn A. McCollum with no recourse *550 against the Board of Supervisors of Maricopa County, Arizona
$4,484.12"

Del Dxxca sued Verdex and Glens Falls to confirm the award entered in that company’s favor and Glens Falls paid Del Duca.

In the same civil action Verdex filed a third-party claim against the Board of Supervisors, the School District and Mc-Collum seeking to confirm the award entered in favor of Verdex. McCollum answered and pleaded that he was not obligated to arbitrate and that he did not consent to arbitrate. The trial court entered its judgment as follows:

“This case, having come on for trial on the Third Party Complaint (Third Party Petition for Confirmation. of Award of Arbitrators and for Judgment of Award) and having been under advisement, and the Court having considered the evidence presented and the law cited, finds that the Defendant McCOLLUM did not consent to and did not take part in the arbitration proceedings and that the arbitrators exceeded their powers in arriving at the award against the Third Party Defendants to this action, therefore,
“IT IS ORDERED that the Third Party Petition for Confirmation of Award of Arbitrators is denied, and that Judgment of Award is denied; and that the Third Party Defendants have judgment thereon and for their costs herein incurred.”

It is this judgment which is before us on appeal.

BOARD OF SUPERVISORS

The entire record discloses that the Board of Sxxpervisors executed the construction contract for and on behalf of the School District, that otherwise it was not a party to the contract, that it did not agree to arbitrate and that it made that fact crystal clear during the arbitration proceedings. We affirm the judgment of the trial court insofar as that judgment determines that there is no liability on the part of the Board of Supervisors. Roeder v. Huish, 105 Ariz. 508, 467 P.2d 902 (1970), recognized the privilege of urging this de-fexise in a sxxit to confirm an award of a board of arbitration where a proper foxxn-dation for that defense has been preserved. In Bacchus v. Farmers Insurance Group Exchange, 12 Ariz.App. 1, 467 P.2d 76 (1970), the Court of Appeals upheld the trial court in its findings that the matter in dispute before the Court was not the subject of the arbitration proceedings. Thus, it is not every award of ai'bitrators which is immune from being questioned in the judicial review thereof. We recognize that the Court of Appeals opinion in Bacchus was vacated on review by our Supreme Court in a case by the same name reported at 106 Ariz.

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Cite This Page — Counsel Stack

Bluebook (online)
509 P.2d 240, 19 Ariz. App. 547, 1973 Ariz. App. LEXIS 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/verdex-steel-construction-co-v-board-of-supervisors-arizctapp-1973.