Hoffbauer v. Homes, Unpublished Decision (8-4-2000)
Hoffbauer v. Homes, Unpublished Decision (8-4-2000)
Opinion of the Court
OPINION
This case involves a dispute between plaintiffs-appellees William and Nancy Hoffbauer and defendant-appellant Wayne Homes regarding the construction of the Hoffbauers' home. Pursuant to the parties' contract, the dispute was submitted to binding arbitration, with a hearing taking place on April 30, 1999. Approximately one month later, the arbitrator issued his award granting Wayne Homes $27,706 in damages. On June 14, 1999, Wayne Homes filed an application in the trial court to have the arbitration award confirmed. The very next day, the trial court's entry confirming the award was journalized. Then, on June 24, 1999, the Hoffbauers filed a motion for relief from judgment pursuant to Civ.R. 60(B)(5). In their memorandum in support of this motion, the Hoffbauers claimed that the "grossly unfair" nature of the arbitration proceeding provided a basis for vacating the arbitration award. Thereafter, the trial court held a hearing on the motion for relief from judgment wherein the Hoffbauers presented the testimony of three witnesses; no transcript of the arbitration hearing was offered for the trial court's review. The trial court subsequently granted the Hoffbauers' motion and ordered that a new arbitration be conducted.In this timely appeal, Wayne Homes asserts that the trial court abused its discretion in granting the Hoffbauers' motion for relief from judgment, where the evidence they presented was insufficient as a matter of law to establish a meritorious claim or defense.1 We agree.
To prevail on a motion brought under Civ.R. 60(B), the movant must demonstrate that he has a meritorious defense or claim to present if relief is granted.2 As applied to the instant case, this means that the Hoffbauers were required to demonstrate that a basis for vacating the arbitration award existed. In doing so, they were limited by R.C.
In any of the following cases, the court of common pleas shall make an order vacating the award upon the application of any party to the arbitration if:
(A) The award was procured by corruption, fraud or undue means.
(B) There was evident partiality or corruption on the part of the arbitrators, or any of them.
(C) The arbitrators were guilty of misconduct in 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.
(D) The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made.
* * *
In their motion for relief from judgment, the Hoffbauers advanced several arguments to support their contention that the arbitration award should be vacated. Their primary contention was that the American Arbitration Association's bias in favor of Wayne Homes provided a basis for vacating the award pursuant to R.C.
2711.10 (B)'s "evident partiality" provision. According to the Hoffbauers, the AAA's bias for Wayne Homes stemmed from the fact that Wayne Homes was a "major client" of the AAA because it had previously utilized the AAA to resolve other disputes arising under its home-construction contracts. They claimed that the AAA's bias was demonstrated by (1) its failure to transmit its case file and exhibit book to the arbitrator prior to the arbitration, when it had otherwise managed to transmit Wayne Homes' materials; (2) its acquiescence to Wayne Homes' requests to schedule an initial mediation session in Summit County, near Wayne Homes' corporate offices, despite the fact that the home that was the basis of the dispute was located in Hamilton County; (3) and its acquiescence to Wayne Homes' subsequent unilateral withdrawal from the scheduled mediation.
In providing a basis to vacate an arbitration award, R.C.
In the instant case, there was no demonstration that the AAA's allegedly biased behavior had the effect of tainting the arbitrator's neutrality. The closest that the Hoffbauers come to even arguing this point is their contention that the AAA failed to provide the arbitrator with the materials relating to their counterclaim for the purpose of leaving him uninformed with respect to their claim so that he would identify more strongly with Wayne Homes' theory of the case. But that alone does not support a conclusion that the arbitrator exhibited "evident partiality" towards Wayne Homes in conducting the arbitration proceedings or in rendering his decision and award. Because the Hoffabuers' advanced no other arguments that can be construed to suggest that the AAA's actions tainted the arbitrator's neutrality or that the arbitrator evinced any independent bias, R.C.
The Hoffbauers also relied on R.C.
In response, Wayne Homes asserted that the Hoffbauers could not rely on R.C.
The Hoffbauers cited one final basis for vacating the arbitration award. They contended that the arbitrator acted improperly by accepting into evidence the affidavit of Wayne Homes' employee Bob Parsons. According to them, it was improper to admit the affidavit into evidence because they were not given the opportunity to review the affidavit or to cross-examine Parsons at the arbitration hearing. Accordingly, they contended that this action constituted "misbehavior" on the part of the arbitrator under R.C.
The misbehavior of an arbitrator may only serve as the basis for vacating an arbitration award under R.C.
Because we have concluded that none of the bases cited by the Hoffbauers were sufficient as a matter of law to justify vacating the arbitration award, it follows that they failed to demonstrate a meritorious claim or defense as they were required to do under Civ.R. 60(B). For this reason, we conclude that the trial court abused its discretion in granting their motion for relief from judgment. Accordingly, we sustain Wayne Homes' sole assignment of error and reverse the trial court's judgment. We hereby reinstate the arbitration award and the trial court's original judgment confirming that award.3 Doan, P.J., and Gorman, J., concur.
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