Worman v. BP America Production Co.

2011 WY 54, 248 P.3d 644, 2011 Wyo. LEXIS 57, 2011 WL 1087201
CourtWyoming Supreme Court
DecidedMarch 25, 2011
DocketS-10-0162
StatusPublished
Cited by5 cases

This text of 2011 WY 54 (Worman v. BP America Production 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
Worman v. BP America Production Co., 2011 WY 54, 248 P.3d 644, 2011 Wyo. LEXIS 57, 2011 WL 1087201 (Wyo. 2011).

Opinion

248 P.3d 644 (2011)
2011 WY 54

Ronald Lee WORMAN and Sherri Lynne Worman, Deceased, Appellants (Plaintiffs),
v.
BP AMERICA PRODUCTION COMPANY, Appellee (Defendant).

No. S-10-0162.

Supreme Court of Wyoming.

March 25, 2011.

*645 Representing Appellants: Larry B. Jones and William L. Simpson, Burg, Simpson, Eldredge, Hersh & Jardine, PC, Cody, Wyoming; Aaron J. Vincent and John R. Vincent, Vincent & Rutzick, Riverton, Wyoming. Argument by Mr. Jones.

Representing Appellee: John A. Coppede, John M. Walker, and Robert J. Walker, Hickey and Evans, LLP, Cheyenne, Wyoming. Argument by Mr. Robert J. Walker.

Before KITE, C.J., and GOLDEN, HILL, VOIGT, and BURKE, JJ.

BURKE, Justice.

[¶ 1] An arbitrator denied Ronald Worman's claims against BP America Production Company. In the district court, Mr. Worman sought to vacate the arbitrator's decision. The district court denied the motion, and Mr. Worman appealed. We will affirm the district court.

ISSUE

[¶ 2] Mr. Worman contends that the arbitrator's decision must be vacated because it shows "a manifest mistake of fact and law."

FACTS

[¶ 3] On August 23, 2006, Mr. Worman was working for Nabors Drilling Company on an oil rig in Carbon County, Wyoming. The well site was owned and operated by BP, and Wayne Sanford was BP's "company man" on site.[1] According to Mr. Worman, *646 Mr. Sanford, "[w]ithout warning, provocation, or any cause," grabbed Mr. Worman and placed him in a "head lock" and squeezed. Mr. Worman felt a "popping sensation in his neck, and immediately experienced significant and severe pain." A few minutes later, Mr. Sanford put his hands around Mr. Worman's neck and began choking him. Mr. Worman filed suit against Mr. Sanford, BP, and two co-workers, claiming he had sustained serious and permanent injury to his neck as a result of Mr. Sanford's actions.[2]

[¶ 4] BP filed a motion with the district court seeking to compel arbitration of the claims, asserting that arbitration was required pursuant to agreements among BP, Nabors Drilling, and the employees of Nabors. The district court stayed the litigation and ordered the parties to submit to arbitration. At some point, Mr. Worman reached settlement agreements with the other defendants, and arbitration proceeded only on his claims against BP. The arbitrator ruled that BP was liable for Sanford's actions only if they were "within the scope of employment or apparent scope of authority." She concluded that Mr. Sanford's actions constituted "horseplay" that was "motivated by personal reasons" and "outside the scope of his authority." On that basis, she ruled that BP was not liable to Mr. Worman.

[¶ 5] Mr. Worman asked the district court to vacate the arbitrator's decision, asserting that it reflected a "manifest mistake of Wyoming law." The district court concluded that manifest mistake of law is not one of the grounds available for vacating this arbitration award, but even if it were, the Arbitrator had not made a manifest mistake of Wyoming law. It denied Mr. Worman's motion, and Mr. Worman perfected this appeal.

STANDARD OF REVIEW

[¶ 6] We review de novo a district court's decision to confirm, vacate, or modify an arbitration award. "When reviewing the district court's order after an arbitration, we `undertake a full review of the record without deference to the views of the trial court.'" Welty v. Brady, 2005 WY 157, ¶ 12, 123 P.3d 920, 924 (Wyo.2005), quoting JBC of Wyoming Corp. v. City of Cheyenne, 843 P.2d 1190, 1194 (Wyo.1992), quoting Inter-Mountain Threading, Inc. v. Baker Hughes Tubular Servs., Inc., 812 P.2d 555, 558 (Wyo.1991). At the same time, this Court, like the district court, shows substantial deference to the decision of the arbitrator.

In reviewing the record below, we are mindful that the grounds for vacating or modifying an arbitrator's award remain narrow in scope. Because of its voluntary, informal nature, awards made in arbitration are subject to less intensive scrutiny than are, for example, the orders of administrative agencies. The reviewing court must observe the principle that arbitrators are free to fashion forms of relief which could not be ordered by a court in law or equity. Furthermore, we are reluctant to disturb an arbitrator's just solution to a controversy, even if it differs from the resolution we might have chosen, had we been in the arbitrator's place. As a voluntary method for resolution of disputes, arbitration is embedded in the public policy of Wyoming and is favored by this court.

JBC, 843 P.2d at 1194 (internal citations omitted).

*647 DISCUSSION

[¶ 7] Pursuant to the parties' agreements, this arbitration was governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16. The United States Supreme Court has held that the grounds for vacating an arbitration award under the Federal Arbitration Act are limited.

Congress enacted the FAA to replace judicial indisposition to arbitration with a "national policy favoring [it] and plac[ing] arbitration agreements on equal footing with all other contracts." Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440, 443, 126 S.Ct. 1204, [1207,] 163 L.Ed.2d 1038 (2006).... The Act also supplies mechanisms for enforcing arbitration awards: a judicial decree confirming an award, an order vacating it, or an order modifying or correcting it. [9 U.S.C.] §§ 9-11. An application for any of these orders will get streamlined treatment as a motion, obviating the separate contract action that would usually be necessary to enforce or tinker with an arbitral award in court. Under the terms of § 9, a court "must" confirm an arbitration award "unless" it is vacated, modified, or corrected "as prescribed" in §§ 10 and 11. Section 10 lists grounds for vacating an award, while § 11 names those for modifying or correcting one.
The Courts of Appeals have split over the exclusiveness of these statutory grounds when parties take the FAA shortcut to confirm, vacate, or modify an award, with some saying the recitations are exclusive, and others regarding them as mere threshold provisions open to expansion by agreement.... We now hold that §§ 10 and 11 respectively provide the FAA's exclusive grounds for expedited vacatur and modification.

Hall Street Associates, L.L.C. v. Mattel, Inc., 552 U.S. 576, 581-84, 128 S.Ct. 1396, 1402-03, 170 L.Ed.2d 254 (2008) (internal citation and footnotes omitted). The statute provides that an arbitration award may be vacated:

(1) where the award was procured by corruption, fraud, or undue means;
(2) where there was evident partiality or corruption in the arbitrators, or either of them;

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2011 WY 54, 248 P.3d 644, 2011 Wyo. LEXIS 57, 2011 WL 1087201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worman-v-bp-america-production-co-wyo-2011.