TERENCE M. HAIGNEY VS. U-HAUL CO. OF NEW JERSEY, INC.,ET AL.(L-3542-14, MONMOUTH COUNTY AND STATEWIDE)
A-4692-14T3
| N.J. Super. Ct. App. Div. | Jun 29, 2017Background
- Plaintiff Terence Haigney, a fencing contractor, rented an open trailer from U-Haul, had U-Haul employee Thomas Bia attach it, loaded twenty 80-lb cement bags, and later crashed when the trailer detached, causing Haigney severe permanent injuries.
- Haigney sued U-Haul alleging multiple negligence theories: defective ball clamp, inoperable trailer brakes (no brake fluid), and improper attachment by U-Haul employee; arbitration was compelled under an FAA-governed agreement.
- At arbitration, testimony from U-Haul employees and experts described proper coupling procedures and acknowledged that an improperly tightened ball clamp/coupler could separate and cause a crash; Haigney and a witness testified the load was evenly distributed.
- The arbitrator (retired Judge Corodemus) found U-Haul liable for allowing inoperable brakes and failing to properly attach the trailer; she apportioned liability 80% to U-Haul and 20% to Haigney and awarded damages.
- U-Haul sought vacatur in Law Division, arguing the arbitrator exceeded authority by deciding liability on an "improper attachment" theory not pled or supported and abused discretion by refusing U-Haul's rebuttal photographs; the trial court confirmed the award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitrator exceeded authority by finding liability based on an "improper attachment" theory | Haigney argued negligence broadly (maintenance/inspection/operation) and that discovery and hearing evidence put U-Haul on notice of improper attachment | U-Haul argued the arbitrator decided liability on an unpled theory, without notice, and with no expert or lay support, so the award should be vacated | Court held arbitrator acted within authority; improper attachment was encompassed by negligence claims and was raised in discovery and at hearing, so no excess of power or manifest disregard |
| Whether arbitrator misconduct or denial of due process occurred by excluding U-Haul's rebuttal photographs/tests | Haigney contended he consistently testified he loaded the trailer evenly and had adequate opportunity to present evidence; exclusion was discretionary under AAA rules | U-Haul argued exclusion denied the chance to rebut alleged inconsistency and deprived it of a fair hearing under 9 U.S.C. § 10(a)(3) | Court held exclusion was within arbitrator's discretion (AAA R-34), U-Haul had ample opportunity to present and cross-examine, and exclusion did not deny a fundamentally fair hearing |
Key Cases Cited
- Minkowitz v. Israeli, 433 N.J. Super. 111 (App. Div. 2013) (standard of review for arbitration awards and deference to arbitrator under controlling statute)
- Manger v. Manger, 417 N.J. Super. 370 (App. Div. 2010) (arbitration review principles)
- Metromedia Energy, Inc. v. Enserch Energy Servs., 409 F.3d 574 (3d Cir.) ("extremely deferential" review of arbitration awards under FAA)
- Hall Street Assocs. v. Mattel, 552 U.S. 576 (U.S. 2008) (limits on judicial vacatur grounds under FAA)
- Tempo Shain Corp. v. Bertek, 120 F.3d 16 (2d Cir.) (arbitrator must provide adequate opportunity to present evidence)
