Image Inc. v. Westfall, Unpublished Decision (12-15-2003)
Image Inc. v. Westfall, Unpublished Decision (12-15-2003)
Opinion of the Court
{¶ 3} "Assignment of Error No. II. The trial court committed error refusing to vacate the arbitration award under Ohio revised code Section
{¶ 4} "Assignment of Error No. III. The trial court committed error in refusing to vacate the arbitration award under Ohio revised code section
{¶ 5} "Assignment of Error No. IV. The trial court committed error refusing to vacate the arbitration award under Ohio revised code section
{¶ 6} "Assignment of Error No. V. The trial court committed error in refusing to vacate the arbitration award under Ohio revised code Section
{¶ 7} "Assignment of Error No. VI. The trial court committed error refusing to allow appellant the right to present evidence to support appellant's motion to vacate before ruling against appellant's motion to vacate the arbitration award.
{¶ 8} "Assignment of Error No. VII. The trial court committed error in confirming the arbitration award because the confirmed award expanded the award issued by a majority of the board."
{¶ 9} Appellant entered into a contract to construct a new home for appellees. The contract provided for payment in five draws, and also contained a binding arbitration clause. Disagreements arose between the parties as to changes and extras which appellant claimed it was entitled to payment for and overpayments and credits which appellees claimed they were entitled to. Mechanics liens were filed by the subcontractors for labor and materials.
{¶ 10} Appellant filed the instant action alleging breach of contract, unjust enrichment, and interference with business relationships, seeking injunctive and monetary relief. The court referred the issues to arbitration pursuant to the contract. An extensive arbitration was held, after which an oral decision was issued, stating that the panel found that appellees should pay appellant $13,600 directly, and appellees would receive no money from appellant, because they would have effectively received an award of $31,400 when they reduced their loan by $45,000.
{¶ 11} Several days later, a written award was issued. The written award was not unanimous. The written award ordered appellant to pay appellees the sum of $17,800, in addition to a reduction in appellees' loan in the amount of $45,000.
{¶ 12} Appellees filed a motion to confirm the written arbitrator's award. Appellant filed a motion to vacate the award, claiming misconduct as to one of the arbitrators. Following a hearing at which the court did not allow the presentation of evidence, the court confirmed the arbitrator's award.
{¶ 14} In its sixth assignment of error, appellant argues that the court erred in refusing to allow appellant to present evidence to support the motion to vacate the award. We agree.
{¶ 15} In its motion to vacate their award, appellant claimed bias and misconduct on the part of one of the arbitrators, which is grounds for vacating the award pursuant to R.C.
{¶ 16} Based on the representations of counsel as to what evidence appellant intended to present at the hearing, we find that the court erred in refusing to allow the parties to present evidence at the hearing. Appellant should have been afforded an opportunity to present witnesses, and appellees an opportunity to cross-examine such witnesses, concerning what occurred after the initial announcement of the decision and the issuance of the final written decision by the panel of arbitrators.
{¶ 17} The sixth assignment of error is sustained.
{¶ 19} The judgment of the Stark County Common Pleas Court is reversed, and this cause is remanded to that court with instructions to hold an evidentiary hearing on appellant's motion to vacate the arbitration award.
Farmer, J. and Boggins, J., concur.
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