Dempsey Uniform & Linen v. R & F Intn'l. & Brake
338 MDA 2016
| Pa. Super. Ct. | Oct 28, 2016Background
- Dempsey Uniform & Linen Supply (plaintiff) sued claiming breach of a rental service agreement and sought arbitration per the contract after a bounced check and unpaid invoices.
- The contract was signed by International Muffler & Brake, LLC; R & F International Muffler & Brake, LLC (appellant) described International as its predecessor in interest.
- Appellant filed preliminary objections asserting plaintiff had not met conditions precedent to judicial intervention in arbitration, but the parties agreed to submit to arbitration on August 18, 2015.
- Arbitrator Thomas Helbig conducted the arbitration on October 26, 2015 and issued an award for plaintiff on October 27, 2015 for $9,266.37.
- Appellant petitioned the trial court to vacate the arbitration award on grounds it was not a signatory to the contract and thus not bound by the arbitration clause; the trial court denied the petition on February 10, 2016.
- On appeal, the Superior Court reviewed whether the trial court abused its discretion in denying vacatur, focusing on the party’s conduct (participation and earlier assertions enforcing arbitration) and lack of procedural irregularity in arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be vacated because R & F was not a signatory to the contract | The contract binds the parties (and plaintiff enforced arbitration) and the arbitrator’s award is valid | R & F argued it was not bound because it did not sign the contract; thus no agreement to arbitrate existed | Court held R & F was bound: it acted as successor, participated in and sought enforcement of the arbitration clause, and failed to show grounds for vacatur |
Key Cases Cited
- Joseph v. Advest, Inc., 906 A.2d 1205 (Pa.Super. 2006) (standard of review for denial of vacatur: abuse of discretion or error of law)
- Conner v. DaimlerChrysler Corp., 820 A.2d 1266 (Pa.Super. 2003) (arbitration vacatur review standard cited)
- Snyder v. Cress, 791 A.2d 1198 (Pa.Super. 2002) (appealability of orders denying petitions to vacate arbitration awards discussed)
- Kemether v. Aetna Life & Casualty Co., 656 A.2d 125 (Pa.Super. 1995) (procedural point that trial court should confirm arbitration award before appeal)
- Sherman v. Amica Mut. Ins. Co., 782 A.2d 1006 (Pa.Super. 2001) (appeal proper from entry of judgment after confirmation of arbitration award)