{"id":884548,"date":"2015-10-28T11:34:49","date_gmt":"2015-10-28T17:34:49","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=884548"},"modified":"2015-10-28T11:34:49","modified_gmt":"2015-10-28T17:34:49","slug":"arbitration-rulings-are-final-even-when-the-arbitrators-get-it-wrong-on-the-law","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-rulings-are-final-even-when-the-arbitrators-get-it-wrong-on-the-law\/","title":{"rendered":"Arbitration Rulings are Final, Even When the Arbitrators Get It \u201cWrong on the Law\u201d"},"content":{"rendered":"

David K. Nelson | Kean Miller | August 13, 2015<\/p>\n

Parties involved in the construction industry have long been familiar with mandatory arbitration as a dispute resolution procedure.<\/p>\n

Originally arbitration<\/a> was said to be more efficient and less expensive than litigation. Over time, experience has shown that arbitration is not necessarily more efficient or more timely.<\/p>\n

Regardless of its potential benefits, one fact remains absolute \u2013 an arbitration ruling is almost always\u00a0<\/strong>final and therefore not subject to appeal or review.\u00a0 The Louisiana Supreme Court recently confirmed this fact in the case of Crescent Property Partners, LLC v. American Manufacturers Mutual Insurance Company, et al;<\/em> 158 So.3d 798, 2014-C-0969 c\/w 2014-C-0973 (La. 1\/28\/15).\u00a0 In Crescent<\/em>, the general contractor and its subcontractors filed motions for summary judgment with the arbitration panel<\/a> alleging that plaintiff\u2019s claims were preemptive because they were not filed within five years of the issuance of the Certificate of Occupancy.\u00a0 The arbitration panel, relying upon the case of Ebinger v. Venus Construction Corporation<\/em>, 10-2516 (La. 7\/1\/11), 65 So. 3d 1279, found that Ebinger<\/em> dictated the retroactive application of the 2003 amendment to La. R.S. 9:2772 and ruled that plaintiff\u2019s claims were untimely asserted outside the preemptive period.\u00a0 The defendants filed suit in district court to confirm the arbitration ruling.\u00a0 Plaintiffs opposed the filing and moved to vacate the award on the grounds that the arbitration panel ruling was not in accordance with law. The district court denied plaintiff\u2019s application to vacate the award and confirmed the arbitration ruling the judgment of the district court.<\/p>\n

Plaintiffs, thereafter, sought review in the Court of Appeal. The Court of Appeal reversed the trial court finding that the arbitration panel had incorrectly concluded the 2003 amendment reducing the time limitation from seven years to five years could be retroactively applied to preempt plaintiff\u2019s claims. The general contractor and subcontractor thereafter requested the Louisiana Supreme Court to consider the issue.\u00a0 The Supreme Court granted the writ \u201cto determine whether the Court of Appeal ruling vacating the arbitration panel decision was proper.\u201d<\/p>\n

The Supreme Court recognized that the grounds for vacating an arbitration award are very narrow, and are limited to the exclusive grounds set forth in La. R.S. 9:4210, which provides:<\/p>\n

In any of the following cases the court in and for the parish wherein the award was made shall issue an order vacating the award upon the application of any party to the arbitration.<\/p>\n

    \n
  1. Where the award was procured by corruption fraud or undue means.<\/li>\n
  2. Where there was evident partiality or corruption on the part of the arbitrators or any of them.<\/li>\n
  3. Where the arbitrators were guilty of misconduct and refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy, or of any other misbehavior by which the rights of any party have been prejudiced.<\/li>\n
  4. Where the arbitrators exceeded their powers or so imperfectly executed them that a mutual, final and definitive award upon the subject matter submitted was not made.<\/li>\n<\/ol>\n

    The Supreme Court ruled that the Court of Appeal erred…<\/p>\n

    To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    David K. Nelson | Kean Miller | August 13, 2015 Parties involved in the construction industry have long been familiar with mandatory arbitration as a dispute resolution procedure. Originally arbitration was said to be more efficient and less expensive than litigation. Over time, experience has shown that arbitration is not necessarily more efficient or more… Continue reading Arbitration Rulings are Final, Even When the Arbitrators Get It \u201cWrong on the Law\u201d<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41,4,172,436],"tags":[42,19,80],"class_list":["post-884548","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-construction-defects","category-construction-law-2","category-dispute-resolution-2","tag-arbitration-2","tag-construction-defects-2","tag-dispute-resolution","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nArbitration Rulings are Final, Even When the Arbitrators Get It \u201cWrong on the Law\u201d - 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