Coldwell Banker Manning Realty, Inc. v. Cushman & Wakefield
Coldwell Banker Manning Realty, Inc. v. Cushman & Wakefield
Opinion of the Court
Opinion
This is one of two separate appeals
Thereafter, CSC contacted Coldwell Banker and requested a meeting to discuss the contract. The meeting was held on April 13, 2000, and also was attended by Cushman’s agents, Grieco and Kelly. At the meeting, Grieco and Kelly represented to Coldwell Banker that Cushman had a simultaneous contract with CSC as its sole and exclusive real estate broker and, therefore, that Cushman would be entitled to the commission on any transaction involving Riverview Square that Cold-well Banker might be in the process of negotiating. As a result of the meeting, CSC requested and obtained a new contract pursuant to which the three parties agreed that CSC would be allowed to select either Coldwell Banker or Cushman to represent it in the Riverview Square transaction, with the company selected receiving 80 percent of the commission and the other company receiving 20 percent. CSC selected Cushman, and Cushman allegedly received a commission of approximately $500,000 following completion of the transaction, none of which it shared with Coldwell Banker.
On April 26, 2002, Coldwell Banker filed a complaint against Cushman, Grieco and Kelly. Coldwell Banker asserted six claims against each defendant, including
On August 14, 2002, the defendants filed a motion to dismiss the complaint for lack of subject matter jurisdiction or, alternatively, to stay the proceedings pursuant to General Statutes § 52-409
Coldwell Banker did not seek to arbitrate its claims against Cushman immediately but chose instead to commence an action against CSC
On December 8, 2005, more than three years after the trial court, Sheldon, J., stayed Coldwell Banker’s action against Cushman, Grieco and Kelly, Coldwell Banker filed a request for arbitration of the claims
On August 2, 2006, the trial court, Bryant, J., granted the joint motion filed by Cushman, Grieco, Kelly and CSC to consolidate the action against Cushman, Grieco and Kelly with the action against CSC. On December 1, 2006, Coldwell Banker filed motions to lift the stays imposed by the trial court in both actions. Cushman and CSC each filed an application to confirm the alleged arbitration award in their respective cases, and Cushman, Grieco and Kelly filed a motion to dismiss the noncontract claims against Cushman and all of the claims against Grieco and Kelly, contending that the trial court lacked subject matter jurisdiction to hear the claims in light of the arbitration award and the fact that arbitration was the exclusive remedy for settling the parties’ dispute. On April 19, 2007, the trial court, Miller, J., granted the applications to confirm the awards and the motion by Cushman, Grieco and Kelly to dismiss the noncontract claims against Cushman and all of the claims against Grieco and Kelly. The court did not act on Coldwell Banker’s motions to lift the stays.
In its memorandum of decision, the trial court concluded that the grievance committee’s dismissals of Coldwell Banker’s requests for arbitration constituted arbitration awards within the meaning of § 52-417 because the dismissals conclusively determined the matters submitted for arbitration, leaving the arbitrator with nothing more to do. Moreover, Coldwell Banker had not contested the dismissals within thirty days. See General Statutes § 52-420 (b).
I
Coldwell Banker first claims that the trial court improperly concluded that the association’s dismissal of its request for arbitration for untimeliness constituted an arbitration award for purposes of § 52-417. Coldwell Banker specifically claims that the dismissal was not an arbitration award because the association refunded the $500 application fee and rejected the sub
Cushman responds that the dismissal constituted an arbitration award because the grievance committee followed the instructions in the arbitration manual before reaching its decision, and, therefore, an arbitration occurred. Cushman asserts that the arbitration procedure outlined in the manual consists of two distinct steps, the first being a determination as to whether a hearing is warranted and the second being a determination of the merits by a hearing panel, and that the second step was not required in this case because the request for arbitration was time barred. Cushman further asserts that, because Coldwell Banker chose not to exercise its right to appeal from the grievance committee’s dismissal, it cannot now object to the award. Cushman contends that, in light of the grievance committee’s determination that the claims were substantively arbitrable but time barred, there is nothing left to litigate. It adds that enforcing time limitations promotes the finality of arbitrable disputes and prevents parties from circumventing their contractual obligations. We agree with Coldwell Banker that the dismissal did not constitute an arbitration award.
The parties do not dispute the underlying facts. Accordingly, whether the trial court properly concluded
We first turn to the governing legal principles. Arbitration is “[a] process of dispute resolution in which a neutral third party (arbitrator) renders a decision after . . . both parties have an opportunity to be heard.” Black’s Law Dictionary (6th Ed. 1990). The decision rendered by the arbitrator upon the controversy submitted for arbitration constitutes the arbitration award. The principal characteristic of an arbitration award is its finality as to the matters submitted “so that the rights and obligations of the parties may be definitely fixed.” Local 63, Textile Workers Union of America, C.I.O. v. Cheney Bros., 141 Conn. 606, 617, 109 A.2d 240 (1954), cert. denied, 348 U.S. 959, 75 S. Ct. 449, 99 L. Ed. 748 (1955). In other words, “[a] final award is [o]ne [that] conclusively determines the matter submitted and leaves nothing to be done except to execute and carry out [its] terms . . . .” (Internal quotation marks omitted.) Marone v. Waterbury, 244 Conn. 1, 12, 707 A.2d 725 (1998). The requirement that an award “be mutual, final and definite as between the parties to the arbitration” has been codified at General Statutes § 52-418 (a) (4).
Section 41 of the association’s arbitration manual, which describes the procedures to be followed by the grievance committee upon receiving a request for arbitration, distinguishes the function of the grievance committee from that of the professional standards committee, explaining that the latter is similar to a court that adjudicates the matters that come before it, whereas the former is similar to a grand jury that “evaluates potentially criminal conduct to determine whether the evidence and testimony presented [warrant] indictment and trial.”
Section 42 of the association’s arbitration manual sets forth the procedure for reviewing a request for arbitration. Section 42 specifically provides that the committee shall “consider” eleven factors in reviewing such a request. Among these factors is whether “the request for arbitration [was] filed within [180] days after the closing of the transaction, if any, or within [180] days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later . . . .” Other factors to be considered include whether all necessary parties are named in the request, whether an arbitrable issue exists, whether the issue is “too legally complex,” whether the amount in dispute is “too small or too large ... to arbitrate,” and whether there is a “sufficient number of knowledgeable arbitrators available . . . .” Section 42 then provides in relevant part that, following consideration of these eleven factors, “[i]f ... a majority of the [g]rievance [c]ommittee conclude[s] that the matter is properly arbitrable . . . the [g]rievance [c]ommittee shall send the request for arbitration to the [c]hairperson of the [professional [standards [c]ommittee for arbitration by an arbitration [h]earing [p]anel. . . .” Section 42 finally provides that, “[i]f the [g]rievance [c]ommittee determines that a matter should not be arbitrated . . . because of the amount involved or the legal complexity, or for any other valid reason specified in the [g]rievance [c]ommittee decision and written report, either of the parties may appeal the decision to the [b]oard of [directors within twenty . . . days of the date of notice of the committee decision .... The [h]earing [p]anel can also dismiss the arbitration
“In the event a request for arbitration is dismissed, any deposit submitted by the complainant shall be returned to the complainant.”
We begin our analysis by noting that, “[e]arly in our judicial history we expressed the view that, since arbitration is designed to prevent litigation, it commands much favor from the law. . . . Especially is it to be encouraged as a means of promoting tranquility and the prompt and equitable settlement of disputes in the field of labor relations. ... It is true, however, that the submission should set forth the questions to be resolved in such a manner as to show clearly what disputes are to be arbitrated.” (Citations omitted.) Local 63, Textile Workers Union of America, C.I.O. v. Cheney Bros., supra, 141 Conn. 612-13. “It necessarily follows that an awardmust conform to the submission.” Id., 613.
In the present case, we conclude that the grievance committee’s dismissal of the request for arbitration was a discretionary decision made on the basis of one of the eleven considerations set forth in the association’s arbitration manual, in particular, the consideration of timeliness.
Our conclusion that the dismissal did not constitute an arbitration award also is supported by our decision in Naugatuck v. AFSCME, Council #4, Local 1303, 190 Conn. 323, 460 A.2d 1285 (1983). In that case, we upheld the trial court’s determination that a finding on the issue of arbitrability did not constitute an award because it did not represent a final resolution of the underlying claim. See id., 325-27. The submission in Naugatuck had been divided into two questions: whether the grievance was arbitrable, and, if so, what disposition should follow. Id., 324. After the state board of labor and arbitration determined that the grievance was arbitrable, the plaintiff filed an application to vacate the decision of arbitrability before the board could address the merits; id.; but the trial court concluded that the application was premature because no award had been rendered.
In the present case, as in Naugatuck, there was no award because the grievance committee did not address and resolve the issues raised in the request for arbitration, and the question of timeliness was not submitted to and determined by the arbitration panel. Consequently, as we previously noted, the dismissal did not conform to the submission. Moreover, the arbitration manual’s description of the grievance committee’s function makes clear that the grievance committee has no authority to make an arbitration award. In distinguishing the roles of the grievance committee and the professional standards committee, § 41 of the arbitration manual states that the latter functions as a court to adjudicate and make decisions on matters involving ethics or arbitration, whereas the grievance committee functions as a gatekeeper to determine whether a matter submitted for arbitration should in fact be arbitrated. Section 42 of the arbitration manual specifies that, after the grievance committee has considered the eleven enumerated factors, it shall determine whether “the matter is properly arbitrable,” and, if so, shall forward the
The foregoing provisions establish, without question, that the grievance committee has no function beyond that of determining whether a matter should be arbitrated. Under the applicable rules and procedures, the grievance committee thus has no authority to arbitrate the matter itself. Accordingly, we conclude that the grievance committee’s dismissal of Coldwell Banker’s request for arbitration did not constitute an award under the arbitration manual’s provisions and that the trial court improperly granted Coldwell Banker’s application to confirm the award because there was no award to confirm.
Cushman concedes that the grievance committee dismissed the arbitration request for untimeliness without reaching the merits but contends that enforcing the limitations regarding timeliness contained in the arbitration agreement, thereby precluding litigation of substantively arbitrable yet untimely commenced claims, promotes the finality of arbitrable disputes in the same manner as a statute of limitations. Cushman also argues that, unless such limitations are enforced, parties will be able to avoid their contractual obligations, safe in the knowledge that Connecticut courts nonetheless will be open to litigate their claims. We disagree.
As we previously discussed, the association’s arbitration manual does not establish strict time limitations for the submission of arbitrable claims that have the
Cushman cites Cole v. Clifford, Docket No. DV-00-234, 2000 Mont. Dist. LEXIS 2090, *23 (December 12,
II
Coldwell Banker next contends that the trial court improperly granted the defendants’ motion to dismiss
Ill
Cushman argues as an alternate ground for affirmance of the trial court’s dismissal of the noncontract claims against Cushman and all of the claims against Grieco and Kelly that, even if this court determines that the alleged arbitration award applies only to the breach of contract and fraud claims against Cushman and that the remaining claims were not submitted
The following additional facts are relevant to our resolution of this claim. In the motion to dismiss the noncontract claims and the claims against Grieco and Kelly, which was filed in conjunction with Cushman’s application to confirm the arbitration award, the defendants argued that the trial court lacked jurisdiction to consider those claims because the parties were bound, by virtue of their membership in the association, to submit the claims to arbitration. The defendants further argued that, because the association’s standards of
Turning to the applicable legal principles, we observe that Practice Book § 63-4 (a) (1) provides in relevant part: “If any appellee wishes to (A) present for review alternate grounds upon which the judgment may be affirmed . . . that appellee shall file a preliminary statement of issues within twenty days from the filing
In the present case, Cushman properly filed a preliminary statement of issues that included the issue of exclusive arbitrability. This court, however, is not bound to consider Cushman’s argument that the grievance committee must make a threshold determination of arbitrability prior to litigation because such a claim was not distinctly raised at trial. See footnote 29 of this opinion; see also, e.g., Gallo v. Barile, 284 Conn. 459, 478 n.15, 935 A.2d 103 (2007) (declining to consider alternate ground for affirmance because claim not raised at trial). We nevertheless consider the exclusivity claim in its entirety because it implicates the trial court’s subject matter jurisdiction, and a claim that a court lacks subject matter jurisdiction may be raised at any time during the proceedings.
With respect to the contract claims against the individual defendants, Judge Sheldon found that Grieco and Kelly were not signatories to the contract and, therefore, that the contract claims against them could not be arbitrated. Neither party disputes this finding. Accordingly, the noncontract claims against the defendants and the contract claims against Grieco and Kelly would not have satisfied the requirements for arbitra
The judgment is reversed and the case is remanded for further proceedings according to law.
In this opinion NORCOTT, PALMER and VERTE-FEUILLE, Js., concurred.
Our decision in the second appeal, released on the same date as this decision, is Coldwell Banker Manning Realty, Inc. v. Computer Sciences Corp., 293 Conn. 628, 980 A.2d 812 (2009).
Coldwell Banker also named Joel M. Grieco and Robert E. Kelly as defendants. CSC was not named as a defendant in the present action. We refer to Cushman, Grieco and Kelly collectively as the defendants. We refer to Cushman, Grieco or Kelly individually by name.
The Greater Hartford Association of Realtors, Inc., is a voluntary, professional association of licensed real estate agents and brokers serving the greater Hartford area.
General Statutes § 52-417 provides: “At any time within one year after an award has been rendered and the parties to the arbitration notified thereof, any party to the arbitration may make application to the superior court for the judicial district in which one of the parties resides or, in a controversy concerning land, for the judicial district in which the land is situated or, when the court is not in session, to any judge thereof, for an order confirming the award. The court or judge shall grant such an order confirming the award unless the award is vacated, modified or corrected as prescribed in sections 52-418 and 52-419.”
General Statutes § 52-409 provides: “If any action for legal or equitable relief or other proceeding is brought by any party to a written agreement to arbitrate, the court in which the action or proceeding is pending, upon being satisfied that any issue involved in the action or proceeding is referable to arbitration under the agreement, shall, on motion of any party to the arbitration agreement, stay the action or proceeding until an arbitration has been had in compliance with the agreement, provided the person making application for the stay shall be ready and willing to proceed with the arbitration.”
In their motion to dismiss or to stay the proceedings, the defendants referred to the following language that the association adopted from the code of ethics of the National Association of Realtors: “In the event of contractual disputes between [realtors] (principals) associated wdth different firms, arising out of their relationship as [realtors], the [realtors] shall submit the dispute to arbitration in accordance with the regulations of their [b]oard or [bjoards, rather than litigate the matter." (Emphasis in original; internal quotation marks omitted.)
In an affidavit dated December 6, 2006, Jeffrey P. Arakelian, chief executive officer of the association, attested that Coldwell Banker, Cushman, Grieco and Kelly were realtors and members of the association in good standing.
CSC was the sole defendant named in that action.
The complaint against CSC alleged fraud, breach of the duty to deal in good faith, breach of contract and violation of CUTPA.
The Appellate Court subsequently granted CSC’s motion to dismiss Coldwell Banker’s appeal from the trial court’s decision granting the motion to stay pending arbitration.
In preparing the arbitration request for submission, Coldwell Banker used a form provided by the association that included the following language: “I request and consent to arbitration through the [a]ssociation in accordance
Jeffrey P. Arakelian, chief executive officer of the association, attested in an affidavit that, “[i]n accordance with [§] 42 of the [c]ode of [e]thics and [arbitration [m]anual of the National Association of [Realtors] . . . when [the association] receives a request for arbitration, it must be forwarded to the [association’s] [g]rievance [c]ommittee.The [gjrievance [c]ommittee has sole responsibility for determining whether ... a matter is subject to arbitration, including, inter alia, whether it has been submitted within the required time frame and whether the issue relates to a real estate transaction and is properly arbitrable.”
The request for arbitration provided in relevant part: “Under the penalties of perjury, I declare that this application and the allegations contained herein are true and correct to the best of my knowledge and belief and this request for arbitration is filed within 180 days after the closing of the transaction, if any, or within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later.” (Emphasis added.) Coldwell Banker crossed out the first reference to “180 days,” which we have emphasized in italics, but did not cross out the second reference to “180 days.”
As we noted previously, the trial court, Sheldon, J., determined that two of Coldwell Banker’s six claims against Cushman were subject to arbitration.
Coldwell Banker crossed out both references to “180 days” in the request for arbitration of the claims against Cushman. In its earlier request for arbitration of the claims against CSC, however, it crossed out only one reference to “180 days.” See footnote 13 of this opinion.
General Statutes § 52-420 (b) provides: “No motion to vacate, modify or correct an award may be made after thirty days from the notice of the award to the party to the arbitration who makes the motion.”
Coldwell Banker appealed to the Appellate Court from the judgment of the trial court, and we transferred the appeal to this court pursuant to General Statutes § 51-199 (c) and Practice Book § 65-1. Although Coldwell Banker’s action against Cushman, Grieco and Kelly was consolidated with the action against CSC for trial, Coldwell Banker opted to take a separate appeal from the trial court’s judgment in each case.
General Statutes § 52-418 (a) provides in relevant part: “Upon the application of any party to an arbitration, the superior court . . . shall make an order vacating the award if it finds any of the following defects ... (4) if the arbitrators have exceeded their powers or so imperfectly executed them that a mutual, final and definite award upon the subject matter submitted was not made.”
Article 7 of the association’s bylaws, entitled “Professional Standards and Arbitration,” provides:
“Section 1. The responsibility of the [association and of [a]ssociation [m]embers relating to the enforcement of the [c]ode of [e]thics . . . and the arbitration of disputes, and the organization and procedures incident thereto shall be governed by the [c]ode of [e]thics and [a]rbitration [m]anual of the [a]ssociation, which by this reference is made a part of these [b]ylaws . . . .
“Section 2. It shall be the duty and responsibility of every [realtor] [m]ember of this [a]ssociation to abide by the constitution, [b]ylaws and [Rules and [Regulations of the [a]ssociation . . . and to abide by the [c]ode of [e]thics of the [National Association of Realtors], including the duty to arbitrate controversies arising out of real estate transactions as specified by [a]rticle 17 of the [c]ode of [e]thics, and as further defined in accordance with the procedures set forth in the [c]ode of [e]thics and [a]rbitration [m]anual of this [a]ssociation, as from time to time as amended.”
Hereinafter, we refer to the National Association of Realtors by its full name. All references to the “association” are to the Greater Hartford Association of Realtors.
Justice Katz observes in her concurring and dissenting opinion that “[a] . . . principle that is of paramount significance in the present case is that, when arbitration is mandated as the exclusive method of dispute resolution, a dismissal of a request to arbitrate for failure to file the request within mandatory time limits conclusively determines the controversy.” (Emphasis added.) Arbitration, however, is not the exclusive method of dispute resolution in this case, and the issue of whether the 180 day filing period is discretionary or mandatory is an issue that this court must resolve on appeal.
Section 41 of the association’s arbitration manual provides in relevant part: “The function of the [g]rievance [c]ommittee is clearly distinguishable from the function of the [p]rofessional [s]tandards [c]ommittee. The [p]rofessional [s]tandards [c]ommittee is similar to a court. The court adjudicates matters that come before it. The [p]rofessional [s]tandards [c]ommittee makes decisions on matters involving ethics or arbitration.
“If the function of the [p]rofessional [s]tandards [c]ommittee is understood as similar to a court, the function of the [g]rievance [c]ommittee can then be understood as similar to that of the grand jury. A grand jury evaluates potentially criminal conduct to determine whether the evidence and testimony presented [warrant] indictment and trial.
“In a similar manner, the [g]rievance [c]ommittee receives ethics complaints and arbitration requests to determine if, taken as true on their face, a hearing is to be warranted. The [g]rievance [c]ommittee makes only such preliminary evaluation as is necessary to make these decisions. While the [g]rievance [c]ommittee has meetings, it does not hold hearings, and it does not decide whether members have violated the [c]ode of [e]thics. The [g]rievance [c]ommittee does not mediate or arbitrate business disputes. . . ."
We disagree with Justice Katz’ conclusion that certain factors that the grievance committee must consider, including the 180 day filing limitation, are not discretionary in nature. The association’s arbitration manual makes no distinction among the different factors. If, as Justice Katz suggests, the manual had intended certain factors to be considered mandatory and others to be discretionary, it would have included a provision to that effect.
Furthermore, there is no support for the view that the arbitration manual may be construed to mean that the grievance committee must dismiss a request for arbitration if affirmative findings are made with respect to factors other than the amount in dispute and the complexity of the legal issue raised. Although Justice Katz relies on Stratford v. International Assn. of Firefighters, AFL-CIO, Local 998, 248 Conn. 108, 728 A.2d 1063 (1999), to make this point, the question of arbitrability in Stratford, in contrast to the question in present case, was submitted directly to the arbitrator, who rendered a decision and award resolving the issue on its merits. Moreover, the language used in the arbitration manual does not suggest that the griev
Justice Katz also creates an artificial distinction between the factors when she asserts that the 180 day time limitation is mandatory because it is “qualitatively different” from other, concededly discretionary factors that the grievance committee considers, such as the amount in dispute. Findings as to the amount in dispute and the timeliness of an arbitration request are not discretionary in and of themselves but, rather, require the exercise of discretion when the grievance committee decides whether to forward the arbitration request to the hearing panel.
The contention that the arbitration request requires the applicant to declare under penalty of perjury that it is filed within 180 days also has no bearing on whether the filing time is mandatory. As we subsequently note in this opinion, the applicant must agree when filing the arbitration request to abide by any potential arbitration award and to comply with it promptly, whereas the arbitration manual provides for an appeal from the grievance committee’s dismissal of an arbitration request, thus strongly suggesting that a dismissal on the ground of an untimely filing is not an award.
Lastly, merely because the obligation to file an arbitration request within 180 days is not binding does not thereby allow the parties to pursue their claims in another forum or to undermine arbitration as a means of settling disputes because the committee only is required to “consider” the eleven factors and, therefore, a late filing does not necessarily preclude arbitration.
We also note that Justice Katz’ assertion that the 180 day filing period may be mandatory has significant constitutional implications. She correctly notes that 180 days is an exceptionally short period of time in which to
Significantly, none of the cases that Justice Katz cites in her concurring and dissenting opinion for the proposition that “[a] decision that a matter is not arbitrable can be an award” and that “a dismissal of a request to arbitrate for failure to file the request within mandatory time limits is an award” is applicable in the present context because the questions of arbitrability and mandatory time limits in each of the cited cases, unlike in the present case, were specifically raised by the parties and submitted, to an arbitrator or arbitration panel for resolution pursuant to the language contained in the parties’ arbitration agreement. Likewise, to the extent that Justice Katz refers to commentary providing that, “[sjhould the arbitrator declare [that] the dispute [is] not arbitrable, such a declaration would constitute an ‘award’ determinative of the rights of the parties and thus a final
The grievance committee’s determination that Coldwell Banker’s submission was not subject to arbitration is not the same as a determination that a matter is nonarbitrable for substantive reasons. As the grievance committee’s report suggests, a matter may be considered arbitrable from a substantive standpoint, as in the present case, but may not be subject to arbitration because the arbitrator declines to arbitrate in the exercise of discretion. We conclude, however, that the effect of a dismissal on these grounds is the same as the effect of a dismissal on the ground of nonarbitrability, and thus rely on cases in which findings of nonarbitrability were not deemed to constitute arbitration awards.
We disagree with Cushman’s contention that Metro Properties, Inc., is inapplicable. Although the basis for the grievance committee’s determination of nonarbitrability in Metro Properties, Inc., was not untimeliness but, rather, a lack of evidence demonstrating a contractual relationship between the parties that would have given rise to a duty to arbitrate; see Metro Properties, Inc. v. Yatsko, supra, 763 A.2d 622; there was no arbitration following the determination of nonarbitrability in that case, and, therefore, no decision was rendered on the merits that could be considered an award.
In Daley v. Hartford, 215 Conn. 14, 19, 574 A.2d 194, cert. denied, 498 U.S. 982, 111 S. Ct. 513, 112 L. Ed. 2d 525 (1990), this court referred to the fact that the state board of mediation and arbitration had issued an “award” that the grievance was nonarbitrable. The statement was nothing more than dictum, however, as the issue in that case did not require a determination as to whether a finding of arbitrability constituted an award.
As we noted previously, the trial court concluded that when Coldwell Banker signed the form provided by the association as part of its submission of the dispute for arbitration, it thereby authorized the association to issue a binding determination on any contract or specific noncontract claims arising out of the disputed transaction.
Cushman appears to assert, in its brief to this court, two theories in support of this claim. On the one hand, Cushman contends that Coldwell Banker’s claims are exclusively arbitrable because the agreement provides that they are subject to arbitration alone and never may be considered by the trial court, a position Cushman also took in arguing in support of the motion to dismiss before the trial court following the grievance committee's decision. In other words, “[l]itigation in the courts [simply] is not an option.” On the other hand, Cushman also contends that the remaining claims must be submitted to the grievance committee “for a threshold determination of arbitrability,” and that, “[u]ntil Coldwell [Banker] pursues arbitration of its claims . . . the trial court lacks subject matter jurisdiction over [the] complaint.” This argument clearly anticipates that the court may have subject matter jurisdiction at some point in time following an initial determination of arbitrability by the grievance committee. Cushman, however, did not make this argument before the trial court.
The memorandum in support of the motion to dismiss indicated that the exclusive procedure for dispute resolution that deprived the court of subject matter jurisdiction “foreclosfed] the possibility that the merits of arbitrable disputes between realtors of different firms [could] ever be litigated in the courts”; (emphasis in original); and, accordingly, “the court, permanently lack[ed] subject matter jurisdiction over the merits of these claims.” (Emphasis added.)
For the same reason, we reject Coldwell Banker’s contention that we should not consider this alternate ground because it merely is a belated and improper appeal from the trial court’s partial denial of the first motion to dismiss and that the claim should have been raised in a cross appeal.
In the present case, the defendants originally filed a motion to dismiss, or, in the alternative, to stay the proceedings pending arbitration under § 52-409. Judge Sheldon thus did not dismiss the contract claims against the defendants but granted the motion to stay pending arbitration of the contract claims against Cushman and denied the motion to dismiss the remaining claims against Grieco and Kelly after determining that they were not subject to the arbitration agreement.
In Real Estate Listing Service, Inc. v. Connecticut, Real Estate Commission, 179 Conn. 128, 425 A.2d 581 (1979), we explained that a listing agreement is an agreement between the property owner and the broker, and described the three basic types of listing agreements traditionally used in this state: “[T]he open listing, under which the property owner agrees to pay to the listing broker a commission if that broker effects the sale of the property but retains the right to sell the property himself as well as the right to procure the services of any other broker in the sale of the property; the exclusive agency listing, which is for a time certain and authorizes only one broker to sell the property but permits the property owner to sell the property himself without incurring a commission . . . and the exclusive right to sell listing, under which the sale of the property during the contract period, no matter by whom negotiated, obligates the property owner to pay a commission to the listing broker.” (Citations omitted.) Id., 132.
Concurring in Part
concurring in part and dissenting in part. The crux of the dispute in the present case is whether the dismissal by the grievance committee (grievance committee) of the Greater Hartford Association of Realtors, Inc., of the request for arbitration filed by the plaintiff, Coldwell Banker Manning Realty, Inc., on the ground that the request had not been filed within a specific 180 day time period constituted an award that, in the absence of a motion to vacate, conclusively disposed of the controversy between the parties. The majority concludes that: the 180 day period is a discretionary time limit after which time the grievance committee simply declined to exercise jurisdiction; such a discretionary decision is not an award; and, accordingly, the grievance committee’s decision does not require dismissal of the plaintiffs action in the trial court. The majority’s principal reason for reaching its threshold conclusion is that, because the arbitration agreement (agreement) between the parties in the present case instructs the grievance committee to “consider” certain factors before it decides whether to refer the matter to an arbitration panel for a full evidentiary hearing and some of those factors undoubtedly involve the exercise of discretion, the 180 day period for filing requests for arbitration similarly must be a matter of
My principal disagreement with the majority’s analysis is that it has reached its conclusion on the basis of an unfounded determination—namely, that, as a matter of law, the agreement clearly and unambiguously indicates the intended effect of the time limit. In my view, this approach is improper because, as I explain in this opinion, the agreement is ambiguous as to this issue. See State v. Philip Morris, Inc., 289 Conn. 633, 643, 959 A.2d 997 (2008) (noting that arbitration agreement is subject to principle of contract construction that, “ [although the intention of the parties typically is a question of fact, if their intention is set forth clearly and unambiguously, it is a question of law” [internal quotation marks omitted]). Indeed, the majority’s opinion overlooks the tension between two policy considerations created by the ambiguity in the agreement: (1) the plaintiffs construction that the majority adopts renders the mandatory arbitration provision in the agreement largely illusory, contrary to the preference for enforce
I begin with certain relevant principles of arbitration jurisprudence. Our court has not defined what constitutes an award. The few courts that have defined the term have done so in broad terms that provide little guidance in the present matter.
A decision that a matter is not arbitrable can be an award; see Stratford v. International Assn. of Firefighters, AFL-CIO, Local 998, 248 Conn. 108, 110-25, 728 A.2d 1063 (1999) (addressing whether doctrine of res judicata barred parties from relitigating question of whether matter was arbitrable under contract when prior “award” had been issued deciding that matter was not arbitrable); that properly may be the subject of a motion to vacate or to confirm.
More significantly for our purposes, a dismissal of a request to arbitrate for failure to file the request within mandatory time limits is an award that may be challenged by way of a motion to vacate or that may be confirmed. See, e.g., Patten v. Signator Ins. Agency, Inc., 441 F.3d 230, 231 (4th Cir.), cert. denied, 549 U.S. 975, 127 S. Ct. 434, 166 L. Ed. 2d 308 (2006); Phillips v. Merrill Lynch, Pierce, Fenner & Smith, Inc., Docket No. 3:05cv1959, 2006 U.S. Dist. LEXIS 50952, *8-10 (D. Conn. July 26, 2006); Young v. Ross-Loos Medical Group, Inc., 135 Cal. App. 3d 669, 671-72, 673-74, 185 Cal. Rptr. 536 (1982); Beroth v. Apollo College, Inc., 135 Wash. App. 551, 556-59, 145 P.3d 386 (2006); see also Tucker v. Fireman’s Fund Agribusiness, Inc., 365 F. Sup. 2d 821, 823-24 (S.D. Tex. 2005) (analyzing motion to compel arbitration as motion to vacate award when petitioner claimed that, “because the arbitrator dismissed the claim based on a time limits defense, arbitration never actually occurred,” given that petitioner’s arguments “appear to concern the validity of the award rather than the existence of arbitration”).
A related principle that is of paramount significance in the present case is that, when arbitration is mandated as the exclusive method of dispute resolution, a dismissal of a request to arbitrate for failure to file the request within mandatory time limits conclusively
Therefore, I agree with the majority that the dispositive issue in this case is whether the dismissal was a
Part nine of the arbitration manual sets forth the authority, function and procedures of the grievance committee in arbitration proceedings. As the majority properly points out, this part of the arbitration manual clearly indicates that the grievance committee acts in a gatekeeping capacity, determining whether the request for arbitration should be referred to an arbitration panel for a full evidentiaiy hearing. Part nine, § 42 (B), of the arbitration manual provides in relevant part: “In reviewing a request for arbitration, the [gjrievance [cjommittee shall consider the following [eleven questions] . . . .”
The majority has set forth several reasons why it has concluded that the 180 day time period is discretionary, which I need not repeat. I would agree with the majority
I disagree, however, with the majority’s implicit conclusion that this construction is the only reasonable one and therefore that the agreement is unambiguous. See Levine v. Advest, Inc., 244 Conn. 732, 746, 714 A.2d 649 (1998) (contract is ambiguous if agreement on its face is reasonably susceptible of more than one interpretation); Rund v. Melillo, 63 Conn. App. 216, 220, 772 A.2d 774 (2001) (“[c]ontract language is unambiguous when it has a definite and precise meaning about which there is no reasonable basis for a difference of opinion” [internal quotation marks omitted]). Because the majority’s construction hinges on the grievance committee’s authority only to “consider” certain matters and the clearly discretionary nature of some of those matters, I first address those points before turning to other factors that would indicate that the agreement mandates the grievance committee to dismiss a matter filed after the 180 day period.
First, the grievance committee undoubtedly would be required to dismiss a request for arbitration if it were to answer some of the questions to be considered in the affirmative. For example, the grievance committee must consider whether the matter is arbitrable
Second, the nature of the 180 day time limit is qualitatively different than the aforementioned clearly discretionary factors that the grievance committee considers. A request either is or is not, as a matter of fact, filed within the 180 day period. There is no discretion involved in making that determination. By contrast, whether “the amount in dispute [is] too small or too large for the [b]oard to arbitrate” or “the matter [is] too legally complex, involving issues that the arbitrators may not be able to address in a knowledgeable way” pursuant to part nine, § 42 (B) (9) and (10) of the arbitration manual are matters over which grievance committee members reasonably could disagree. Indeed, there is no qualitative language to guide the grievance committee in deciding under what circumstances an untimely filed claim could be referred to arbitration.
Finally, if the obligation to file a request within 180 days is not binding, the clearly mandatory obligation under the agreement to use arbitration as the exclusive dispute resolution method would become largely illusory. Cf. Cole v. Clifford, supra, 2000 Mont. Dist. LEXIS *23 (stating in case where realtor agreement included express mandate to file request within 180 days, “[i]f a party with a dispute, who has agreed via contract to submit that dispute to mandatory arbitration, is permitted to wait out the limitations period prescribed by the arbitration clause, and then bring litigation in the court system, the very purpose of our state-enacted arbitration statutes has been thwarted”). A party seeking to avoid arbitration could, at the very least, all but guaran
Similarly, the grievance committee’s decision does not make the basis of its decision clear so that we can determine whether its decision is dispositive of the plaintiffs claims or whether it leaves open the possibility of litigation.
When arbitration decisions are ambiguous, the courts have authority to remand the case, without vacating it, to the arbitral authority to clarify the basis of its decision. See Hartford Steam Boiler Inspection & Ins. Co. v. Underwriters at Lloyd’s & Cos. Collective, 271 Conn. 474, 484-94, 857 A.2d 893 (2004) (discussing case law supporting such authority and limitations on arbitral authority in such instances solely to clarify basis of decision and not to redetermine merits), cert. denied, 544 U.S. 974, 125 S. Ct. 1826, 161 L. Ed. 2d 723 (2005); see also Phillips v. Merrill Lynch, Pierce, Fenner & Smith, Inc., supra, 2006 U.S. Dist. LEXIS *15-16 (denying motion for confirmation of award that dismissed request for arbitration on ground that request was untimely and remanding case to arbitral authority to clarify basis of decision to indicate whether dismissal was dispositive of claims or permitted litigant to pursue claims in court). In so doing, the court “ensures that private agreements to arbitrate are enforced according to their terms. . . . Doctor’s Associates, Inc. v. Casarotto, 517 U.S. 681, 688, 116 S. Ct. 1652, 134 L. Ed. 2d 902 (1996), quoting Volt Information Sciences, Inc. v. Board of Trustees of Leland Stanford Junior University, 489 U.S. 468, 479, 109 S. Ct. 1248, 103 L. Ed. 2d
Therefore, I would conclude that the most appropriate course of action is to reverse the trial court’s decision and direct it to remand the case to the grievance committee for a clarification as to whether: (1) in the exercise of its discretion, the grievance committee declined to refer the matter to arbitration because the request had been filed beyond the 180 day period; or (2) the grievance committee was mandated under the agreement to dismiss the request because it has no jurisdiction over a request made beyond that 180 day period. I further would conclude that, if the grievance committee’s articulation indicates that the dismissal was mandatory and jurisdictional, that articulation is the operative award in this case that triggers the parties’ rights to seek vacation or confirmation.
Therefore, I respectfully concur in part and dissent in part.
I agree with the plaintiff that the trial court’s ruling expressly held that the claims against the individual defendants, Joel M. Grieco and Robert E. Kelly, were not subject to arbitration and that the plaintiff did not expand the scope of arbitration in its submission to include those defendants. The plaintiff listed only the named defendant as a respondent in the request for arbitration and expressly stated in its accompanying letter that the request “is limited [to] matters as set forth in the court’s [attached] ruling. ” Therefore, I would conclude that the grievance committee’s dismissal of the request for arbitration had no effect on the claims against Grieco and Kelly that remained pending before the trial court subject to the conclusion of the arbitration proceedings.
See, e.g., Chillum-Adelphi Volunteer Fire Dept., Inc. v. Button & Goode, Inc., 242 Md. 509, 516, 219 A.2d 801 (1966) (defining “arbitration award” as “decision of an extra-judicial tribunal which the parties themselves have created, and by whose judgment they have mutually agreed to abide” [internal quotation marks omitted]); Chiesa v. Fetchko, 318 Pa. Super. 188, 194, 464 A.2d 1293 (1983) (“An award has been defined as the decision or determination rendered by arbitrators or commissioners upon a controversy submitted to them. Black’s Law Dictionary [5th Ed. 1979]. See also 3 P.L.E. Arbitration § 12 [an award is the final judgment or decision pronounced by the arbitrators in settlement of the controversy submitted to them]. Also, it has been held that an award is a judgment of a tribunal selected by the parties to determine matters actually in variance between them. Keiser v. Berks County, 253 Pa. 167, 97 A. 1067 [1916].”), aff'd, 504 Pa. 503, 475 A.2d 740 (1984); Beroth v. Apollo College, Inc., 135 Wash. App. 551, 558 n.3, 145 P.3d 386 (2006) (“[a]n arbitrator’s award is a ‘statement of the outcome, much as a judgment states the outcome’ ”).
The majority relies on Metro Properties, Inc. v. Yatsko, 763 A.2d 617, 622 (R.I. 2000), for a contrary conclusion. In that case, the Rhode Island Supreme Court concluded that a party was not entitled to attorney’s fees that were to be awarded to a prevailing party if that party needed to obtain judicial enforcement of an award. The court concluded, inter alia, that the arbitration panel’s decision that the matter was not arbitrable because a condition precedent to arbitration had not been met, namely, that there was a contractual relationship between the parties, was not an award. Id. I would simply point out that the basis for the underlying arbitration decision in that case is distinguishable from a decision that the matter submitted is not arbitrable. To the extent the Rhode Island court intended to state a broad principle applicable to the latter, the court cited no authority for such a proposition and, indeed, the authority I have uncovered, which is noted in the text above, is all to the contrary.
The majority concludes that this principle is inapplicable because, as I have noted in footnote 6 of this concurring and dissenting opinion, arbitration is not mandated under the operative agreement in the present case if both parties agree and properly notify the arbitration authority that they do not wish to arbitrate the matter. Contrary to the majority’s view, it appears to me that this principle is fully applicable when the parties have not met the prerequisites to avoid their obligation to arbitrate.
I am not inclined to agree with the plaintiff that the fact that there was no evidentiary hearing and that the fee was refunded dictate a conclusion that the grievance committee’s decision is not an award. The parties contractually agreed to accept the arbitration procedures, the plaintiff stipulated to the grievance committee the fact that the request for arbitration had been filed after the 180 day time period had passed; see footnote 12 of this concurring and dissenting opinion; and there is no claim that these procedures are unenforceable. See HH East Parcel v. Handy & Harman, 287 Conn. 189, 196, 947 A.2d 916 (2008) (“[A]rbitration is a creature of contract, whereby the parties themselves, by agreement, define the powers of the arbitrators. . . . [W]hen the parties have established the authority of the arbitrator, the extent of our judicial review of the award is delineated by the scope of the parties’ agreement.” [Internal quotation marks omitted.]); see also United Paperworkers International Union, AFL-CIO v. Misco, Inc., 484 U.S. 29, 39-40, 108 S. Ct. 364, 98 L. Ed. 2d 286 (1987) (“[t]he parties bargained for arbitration to settle disputes and were free to set the procedural rules for arbitrators to follow if they chose”). If the grievance committee had concluded that the dispute was not arbitrable, I cannot see how its refund of the fee would render that decision, which otherwise would be treated as an award, not to be an award.
Article 17 of the code of ethics further provides that arbitration is not required if the parties notify the board in writing that they have chosen not to arbitrate the matter.
Part nine, § 42, of of the arbitration manual provides: “In reviewing a request for arbitration, the [g]rievance [c]ommittee shall consider the following:
“(1) Is the request for arbitration acceptable in the form as received by the committee? If not in proper form, the [c]hairperson may request that the [e]lected [s]ecretary or the [e]xecutive [o]fficer contact the complainant to advise that the request must be submitted in proper form.
“NOTE: If deemed appropriate by the [c]hairperson, a member of the [g]rievance [c]ommittee may be assigned to contact the complainant and to provide procedural assistance to amend the request or resubmit a new request in proper form and with proper content. The [g]rievance [c]ommittee member providing such assistance shall ensure that only procedural assistance is provided to the complainant, and that the complainant understands that the member is not representing the complainant.
*620 “(2) Are all necessary parties named in the request for arbitration? The duty to arbitrate is an obligation of [Realtor] principals. [Realtor] principals include sole proprietors, partners in apartnership, officers or majority shareholders of a corporation, or office managers (including branch office managers) acting on behalf of principals of a real estate firm. . . .
“(3) Was the request for arbitration filed within one hundred eighty (180) days after the closing of the transaction, if any, or within one hundred eighty (180) days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later? . . .
“(4) Are the parties members in good standing or otherwise entitled to invoke arbitration through the [b]oard’s facilities? Were the parties members at the time the facts giving rise to the dispute occurred?
“(5) Is litigation pending in connection with the same transaction?
“NOTE: No arbitration shall be provided on a matter pending litigation unless the litigation is withdrawn with notice to the [b]oard and request for arbitration, or unless the court refers the matter to the [b] oard for arbitration.
“(6) Is there any reason to conclude that the [b]oard would be unable to provide an impartial [h] earing [p]anel?
“(7) If the facts alleged in the request for arbitration were taken as true on their face, is the matter at issue related to a real estate transaction and is it properly arbitrable, i.e., is there some basis on which an award could be based?
“(8) If an arbitrable issue exists, are the parties required to arbitrate or is their participation voluntary?
“(9) Is the amount in dispute too small or too large for the [b]oard to arbitrate?
“(10) Is the matter too legally complex, involving issues that the arbitrators may not be able to address in a knowledgeable way?
“(11) Is there a sufficient number of knowledgeable arbitrators available?
“If all of the relevant questions have been considered, and a majority of the [g]rievance [c]ommittee conclude that the matter is properly arbitrable by the [b]oard, the [g]rievance [cjommittee shall send the request for arbitration to the [c]hahperson of the [professional [s]tandards [c]ommittee for arbitration by an arbitration [h]earing [p]anel.”
Apparently, the arbitration panels are comprised of other realtors who are association members, not attorneys.
I note, however, that, unlike the agreement in the present case, other realtor arbitration agreements expressly have acknowledged the arbitral authority’s discretion to decline to exercise jurisdiction over an otherwise mandatory subject of arbitration, as well as the effect of such a decision. See, e.g., Berke v. Tri Realtors, 208 Cal. App. 3d 463, 468, 257 Cal. Rptr. 738 (1989) (Citing provisions of the arbitration manual providing that “every [a]ctive member binds himself [or herself] and agrees to submit to arbitration by the [b]oard’s facilities all disputes with any other [a]ctive member, if either party to the dispute should so request and if the [b]oard is willing to arbitrate the matter” and further providing: “If either the [c]hairperson of the [professional [standards [p]anel, in conjunction with the [secretary, or the [a]rbitration [p]anel selected in the manner hereinafter provided determine that because of the magnitude of the amount involved or the legal complexity of the controversy the dispute should not be arbitrated, they shall so report to the [b]oard of [directors and if the [b]oard of [d]irectors concurs, the arbitration shall terminate and the parties shall be relieved of their obligation to arbitrate the controversy. In this event, any deposit made by the parties shall be returned to the parties.” [Emphasis altered.]); see also Jorgensen Realty, Inc. v. Box, 701 P.2d 1256, 1257 (Colo. App. 1985) (noting that arbitration manual gave Colorado Association of Realtors authority to determine whether it would accept dispute and reciting fact that chairman of professional standar ds committee of Colorado Association of Realtors had informed party requesting arbitration that grievance committee had not accepted dispute for arbitration and that “plaintiff was free to pursue other remedies”).
I am unclear how our case law concluding that a decision that a matter is arbitrable is not an award advances the majority’s reasoning. In each of the cases in which this court concluded that such a decision was not an award, there was another matter pending before an arbitrator as to the merits of the dispute. Therefore, we have treated such decisions as not being an award solely because they are not final; in other words, they are interlocutory decisions. See State v. Connecticut Employees Union Independent, 184 Conn. 578, 579-80, 440 A.2d 229 (1981); Conte v. Norwalk, 173 Conn. 77, 80, 376 A.2d 412 (1977). In the present case, there is no interlocutory, nonfinal decision. I am similarly unclear as to the majority’s reliance on case law addressing whether an award is outside the scope of the submission. In such a case, the arbitrator has exceeded his authority; Harty v. Cantor Fitzgerald & Co., 275 Conn. 72, 84, 881 A.2d 139 (2005); whereas the majority’s position in the present case, if I understand it correctly, is that the arbitral authority had, authority to reach the merits but declined to exercise it beyond the 180 day period.
As I previously have noted herein, a decision that a matter is not arbitrable is an award. Therefore, it cannot be said that the grievance committee’s gatekeeping function deprives it of authority to render an award when the grievance committee is charged as part of the function to make that determination.
The plaintiff crossed out the language in the arbitration request referring to the 180 day period and stated in a letter that accompanied the request: “Please note that the court ordered arbitration after the 180 day time limit had passed. This request for arbitration, therefore, has been filed after the 180 day time limit has passed. We have amended the request for arbitration to reflect this fact.”
The only evidence submitted to the trial court that bears on this issue is the second supplemental affidavit of Jeffrey P. Arakelian, the president and chief executive officer of the association, who stated therein that “[t]he [g]rievance [c]ommittee has sole responsibility for determining whether or not a matter is subject to arbitration, including, inter alia, whether it has been submitted within the required time frame and whether the issue relates to a real estate transaction and is properly arbitrable.” (Emphasis added.)
Reference
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