Maumee W. Rr. v. Indiana Ohio Railway, Unpublished Decision (5-10-2004)
Maumee W. Rr. v. Indiana Ohio Railway, Unpublished Decision (5-10-2004)
Opinion of the Court
{¶ 2} This case began in July of 2000 when IO initiated arbitration pursuant to a 1927 agreement, to determine whether MW was required to pay a pro rata share of repair costs to an interlocking rail crossing system in Liberty Center, Ohio. At that time, IO notified MW by proper mailing of its demand for arbitration. Upon receiving notification, MW sent a letter to IO's attorney, stating MW was not a party to the 1927 agreement and that it would refuse to participate in the arbitration proceedings.
{¶ 3} In September of 2001, an arbitration hearing was held; MW did not participate. In October of 2001, a written arbitration award was made in favor of IO. The arbitrator found that both IO and MW were successors in interest to the 1927 agreement, that the operation of the interlocking railcrossing at Liberty Center was necessary for the continued operation of both parties, that IO had made certain repairs and maintenance to the Liberty Center interlocking railcrossing, and that pursuant to the 1927 agreement, IO was entitled to reimbursement from MW for a portion of the costs of those repairs and maintenance. Accordingly, IO was awarded the amount of the unpaid maintenance charges that IO had assessed MW, totaling seventy-eight thousand, three hundred and seven dollars and sixty-six cents ($78,307.66).
{¶ 4} In response to the arbitration award, MW filed a complaint for declaratory and injunctive relief. Subsequently, IO filed an answer to the complaint and a counterclaim, requesting the trial court confirm the arbitration award pursuant to R.C.
{¶ 5} In August of 2003, the trial court entered judgment. Finding MW's complaint for a declaratory judgment was without merit, the court dismissed MW's complaint. Additionally, the court granted IO's motion to confirm the arbitration award and entered judgment in favor of IO against MW in the amount of $78,307.66 plus interest. It is from this judgment MW appeals, presenting three assignments of error for our review.
{¶ 6} In its three assignments of error, MW maintains that it was not subject to arbitration because it was not a party to the 1927 agreement; however, we address first whether the filing of a complaint for declaratory relief by MW was the proper method to challenge the arbitration award.
{¶ 7} The Ohio Supreme Court addressed this issue in Galionv. Am. Fedn. of State, Cty. Mun. Employees (1995),
R.C. Chapter 2711 provides the exclusive statutory remedywhich parties must use in appealing arbitration awards to thecourts of common pleas. An action in declaratory judgment cannotbe maintained to circumvent the clear legislative intent of R.C.Chapter 2711. Id. at para. one of syllabus.
In reaching its holding, the Supreme Court noted that:
R.C.
* * *
In our view the language of R.C.
{¶ 8} Here, MW filed its complaint for declaratory relief, asking the court to determine that MW was not subject to the 1927 agreement and that IO be enjoined from asserting any rights under the 1927 agreement. MW's complaint also asked the court to grant injunctive relief barring the enforcement of the arbitration award, to grant MW costs and attorney's fees, and to grant any further remedies as may be determined by the court. Based on the nature of the relief sought by MW's complaint, specifically MW's request for injunctive relief barring the enforcement of the arbitration award, we find MW was appealing the arbitration award. Because "R.C. Chapter 2711 provides the exclusive statutory remedy which parties must use in appealing arbitration awards to the court of common pleas" and "an action in declaratory judgment cannot be maintained to circumvent the clear legislative intent of R.C. Chapter 2711," we find the court properly dismissed MW's complaint for declaratory relief.
{¶ 9} MW maintains, though, that it was not a "party" to the arbitration proceeding because, it contends, it was not a party to the 1927 agreement requiring arbitration. MW would have us apply an overly narrow characterization of the term "party." Because the arbitration statute does not define the term "party" as used therein, we must apply the ordinary and commonly understood meaning of the term. See R.C.
{¶ 10} Irrespectively of the validity of MW's claim that it is not a party to the agreement, it became a party to the arbitration proceeding when it was named a party by IO, was notified of the proceeding, and had the opportunity to participate, assert its defense, and appeal as appropriate. To analogize the situation with an action under the Civil Rules, although one who is brought into the proceedings as a defendant may dispute and contest the claims being asserted against him, he is still a party to the proceeding.
{¶ 11} MW had proper standing under R.C.
In any of the following cases, the common pleas shall make anorder vacating the award upon the application of any party to thearbitration if:
* * *
(D) The arbitrators exceeded their power * * *.
Because MW was challenging the arbitrators' authority to render a decision, MW was clearly within the sweep of the statute and could have challenged the arbitration award under R.C.
{¶ 12} Finally, we hold that the trial court's confirmation of the arbitration award was proper. "[O]nce an arbitration subject to R.C. Chapter 2711 is completed, the jurisdiction of the common pleas court is limited to confirmation, vacation, modification or enforcement of the award and only on terms provided by statute, i.e., R.C.
The jurisdiction of the courts to review arbitration awards is narrow and limited pursuant to legislative decree. Warren Edn.Assn. v. Warren City Bd. of Edn. (1985),
When a motion is made pursuant to R.C.
{¶ 13} Here, upon the filing of a motion to confirm by IO, the court was required to confirm the arbitration award because no contrary motion to vacate or modify had been filed by MW. Accordingly, the court's confirmation of the arbitration award was proper.
{¶ 14} Finding both the court's dismissal of MW's complaint for declaratory relief and the court's confirmation of the arbitration award were proper, the first, second and third assignments of error are, therefore, overruled.
{¶ 15} Having found no error prejudicial to the appellant herein, in the particulars assigned and argued, we affirm the judgment of the trial court.
Judgment affirmed.
Shaw, P.J., and Bryant, J., concur.
Reference
- Full Case Name
- Maumee Western Railroad Corporation v. Indiana Ohio Railway Company
- Cited By
- 1 case
- Status
- Unpublished