57 A.3d 668
R.I.2012Background
- Carlisle Building Systems contracted for a Charlestown Fire Station project; Drago performed carpentry and sought payment.
- A Labor and Material Payment Bond was issued with Carlisle as principal and IFIC as surety; PWAA arbitration provision applied.
- Arbitrator awarded Carlisle liable for $43,543.02; IFIC found not liable due to lack of bond evidence, despite admitting bond existence in answer.
- Drago sought to introduce the bond; arbitrator issued two amended awards, later deleting a key finding and adding “without prejudice” language.
- Superior Court remanded to arbitrator for clarification; after remand, arbitrator held both Carlisle and IFIC liable for the same amount.
- IFIC challenged the remand and modification, leading to appellate review of PWAA’s scope and the arbitrator’s authority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| PWAA permits remand for clarification? | Drago argued trial court had inherent/remand authority. | IFIC argued PWAA limits actions to vacate/modify/affirm; no inherent remand. | Remand authorized under PWAA; not an inherent court power. |
| Validity of the second amended award and potential vacatur? | Drago supported vacating and reissuing a definite award. | IFIC argued awards were within arbitrator’s scope and correct. | Second amended award vacated; remand to rehear permitted. |
| Whether the “without prejudice” language defeated finality of the award? | Drago argued language made the award nonfinal and defective. | IFIC contended language preserved finality or lacked effect. | “Without prejudice” language rendered award not final/definite; vacatur appropriate. |
Key Cases Cited
- Pier House Inn, Inc. v. 421 Corp., 812 A.2d 799 (R.I. 2002) (remand for clarification where record insufficient; statutory remand authority discussed)
- Lemoine v. Department of Mental Health, Retardation and Hospitals, 320 A.2d 614 (R.I. 1974) (remand for additional evidence under APA as inherent power to correct record)
- Metropolitan Property & Casualty Insurance Co. v. Barry, 892 A.2d 915 (R.I. 2006) (describes judiciary role in arbitration proceedings)
- State v. Rhode Island Employment Security Alliance, Local 401, SEIU, AFL-CIO, 840 A.2d 1093 (R.I. 2003) (cases involving review of administrative/arbitration contexts)
- Aponik v. Lauricella, 844 A.2d 698 (R.I. 2004) (arbitration-related authority and standards cited)