Atreus Communities Group v. Stardust Development, Inc.
229 Ariz. 503
| Ariz. Ct. App. | 2012Background
- Arbitration under a Joint Development and Escrow Agreement (JDA) between Atreus and Stardust for residential development infrastructure and water facilities; AAA Real Estate Industry Rules invoked; arbitrator granted summary judgment on breach and related claims; arbitrator later granted summary judgment on fraudulent concealment; award included attorneys' fees and costs; Atreus sought court confirmation but challenged arbitrator’s power; superior court confirmed the award; Atreus appeals arguing lack of hearing and improper use of summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the arbitrator have authority to grant summary judgment under the JDA and AAA Rules? | Atreus argues no authority; summary judgment is not permitted. | Stardust argues rules allow any remedy or relief, including summary judgment. | Yes, arbitrator had authority to grant summary judgment. |
| Whether denial of a surreply to Stardust’s confirmation brief was error? | Atreus sought to respond to replies with a surreply under Rule 12-1515. | No provision for surreply in standard motion procedure; burden rests with opposition. | No error; surreply denial affirmed. |
| Whether appellate award of attorneys’ fees is appropriate on appeal? | Atreus challenges fee award against it on appeal. | Stardust seeks fees but court may exercise discretion; awarded only costs. | Court denied fees on appeal, awarded taxable costs instead. |
Key Cases Cited
- Brake Masters Systems, Inc. v. Gabbay, 206 Ariz. 360 (Ariz. App. 2003) (arbitrator powers deferential review; incorporated rules grant broad authority)
- Smitty's Super-Valu, Inc. v. Pasqualetti, 22 Ariz. App. 178 (Ariz. App. 1974) (boundaries of arbitrator's powers defined by agreement; default deferential review)
- Einhorn v. Valley Medical Specialists, P.C., 172 Ariz. 571 (Ariz. App. 1992) (public policy favors arbitration; limited judicial review)
- Schlessinger v. Rosenfeld, Meyer & Susman, 47 Cal.Rptr.2d 650 (Cal. Ct. App. 1995) (implied authority of arbitrator to rule on summary adjudication motions)
- Campbell v. American Family Life Assurance Co. of Columbus, Inc., 613 F. Supp. 2d 1114 (D. Minn. 2009) (summary judgment permissible in arbitration when appropriate)