PAMI REALTY, LLC VS. LOCATIONS XIX INC (L-5845-18, MIDDLESEX COUNTY AND STATEWIDE), A-0576-20

Parties contracted for construction work with an AIA-based arbitration clause; dispute arose after Locations filed a construction lien and Pami sued to remove it.
The parties entered a consent order permitting Pami to deposit $274,924.37 into its counsel’s trust account as an escrow (in lieu of a bond) pending completion of arbitration and issuance of an award.
A retired judge served as arbitrator; during the arbitration he engaged the parties in brief settlement discussions and later advised he had drafted an opinion in favor of Locations awarding monetary relief.
Pami objected for the first time after the arbitrator’s tentative ruling, alleging the arbitrator improperly acted as mediator and then resumed as arbitrator and that any agreement permitting that had to be in writing (citing Minkowitz).
The trial court vacated the award without an evidentiary hearing, relying on Minkowitz; the judge also denied confirmation of the award and ordered the escrow funds to remain.
The Appellate Division reversed those orders (except the escrow ruling), held parties may agree to an arbitrator’s settlement role without a writing, and remanded for an evidentiary hearing to resolve factual disputes about whether the parties agreed to the arbitrator’s dual role.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the arbitrator exceeded his authority by acting as mediator and then issuing an award	The arbitrator exceeded powers by mediating then arbitrating; award must be vacated	Parties agreed (and waived any conflict), so arbitrator did not exceed powers	Whether arbitrator exceeded powers depends on whether parties agreed; remand for fact finding
Whether any agreement permitting the arbitrator to mediate then arbitrate must be in writing	Agreement must be in writing (Minkowitz interpreted to require writing)	No writing required; oral agreement/waiver can suffice	No writing requirement; parties can orally agree to dual role
Whether Pami waived its right to object by participating after settlement talks	No waiver; role was unauthorized and objection timely once decision disclosed	Pami failed to object at the time and participated, so waived challenge	Court did not decide waiver on appeal; factual question for evidentiary hearing
Whether the trial court erred by denying an evidentiary hearing and vacating award without resolving factual disputes	Trial court need not hold one; Minkowitz controls	An evidentiary hearing is required to resolve dueling certifications and disputed facts	Trial court erred; remanded for evidentiary hearing; escrow order affirmed

Minkowitz v. Israeli, 433 N.J. Super. 111 (App. Div.) (an arbitrator who acts as mediator may not resume arbitrator role absent parties' agreement)
Kearny PBA Local #21 v. Town of Kearny, 81 N.J. 208 (1979) (arbitration awards are entitled to deference; vacatur available only on limited statutory grounds)
Leodori v. Cigna Corp., 175 N.J. 293 (2003) (oral contracts are enforceable absent Statute of Frauds requirement)
Kernahan v. Home Warranty Administrator of Florida Inc., 236 N.J. 301 (2019) (addressing enforceability of arbitration agreements)
Quinn v. Quinn, 225 N.J. 34 (2016) (courts should not rewrite contracts or grant a better deal than bargained for)