¶ 1 Atreus Communities Group (“Atreus”) appeals the superior court’s i’uling confirming the arbitration award in favor of Stardust Development, Inc. (“Stardust”) on Atreus’s claim for breach of contract and fraudulent concealment. Atreus contends that the award should not have been confirmed because the arbitrator exceeded his authority by granting summary judgment rather than conducting an oral evidentiary hearing. Addressing a question of first impression in Arizona, we hold that under the arbitration agreement and the applicable rules adopted by that agreement, the arbitrator was authorized to grant summary judgment. Accordingly, we affirm the superior court’s confirmation of the arbitration award.
FACTUAL AND PROCEDURAL HISTORY
¶ 2 In 2004, Stardust entered into a Joint Development and Escrow Agreement (“JDA”) with several builders, including Atreus, for the construction of a residential development. Stardust was responsible for administering the construction and installation of certain improvements, including certain sewer and wells for water.
¶ 4 After a delay occurred in the completion of the well facilities and other infrastructure, Atreus initiated arbitration against Stardust, alleging breach of contract, breach of the covenant of good faith and fair dealing, and fraudulent concealment. Atreus contended that it had entered into contracts for sale of its homes, but it could not close on the contracts because of the lack of water services. Atreus claimed that Stardust had knowledge of but had failed to notify it of the delay. It claimed that, had it known of the delay, it would not have built the homes or entered into the contracts for sale.
¶ 5 Stardust filed a motion for summary judgment as to the breach of contract claim. In response, Atreus argued that summary judgment was not permitted in the arbitration proceeding because Section 9 of the JDA and the AAA Rules entitled the parties to a hearing and the right to present evidence.
¶ 6 The arbitrator found that the JDA and AAA Rules did not preclude summary judgment:
[Ajfter reading Section 9 of the JDA and the AAA Real Estate Industry Arbitration Rules I do not believe they preclude an arbitrator from deciding an issue as a matter of law if there are no genuine issues of material fact relating to that issue. Section 9(f) of the JDA reads that “[t]he arbitrator shall have the authority to award any remedy or relief that a court of the State of Arizona could order or grant____” Rule 45 of the AAA Rules reads that: “[t]he arbitrator may grant any remedy or relief that the arbitrator deems just and equitable and within the scope of the agreement of the parties....”
The arbitrator granted summary judgment to Stardust, finding that under the JDA, Stardust had the right, but not the obligation, to provide notice of an anticipated delay. The arbitrator also granted summary judgment on the breach of the covenant of good faith and fair dealing claim, finding that under the JDA, Atreus had expressly waived its right to seek indirect, consequential, punitive, or special damages caused by a breach under the JDA.
¶ 7 Stardust then moved for summary judgment on Atreus’s claim for fraudulent concealment. The arbitrator granted the motion, finding:
[Djespite having conducted discovery and having obtained documents and taken depositions, [Atreus] has not been able to come forth with evidence from which a reasonable fact-finder could infer that [Stardust] took measures intended to prevent claimant from learning what it knew about whatever issues it was having with [the water utility]. This is especially true under the heightened clear and convincing standard____
¶ 8 The arbitrator awarded attorneys’ fees to Stardust pursuant to the JDA in the amount of $150,000, plus costs in the amount of $26,727.60.
¶ 9 Pursuant to Arizona Revised Statutes (“A.R.S.”) section 12-1511 (2003), Stardust filed an application in superior court to confirm the arbitration award and for entry of judgment. Atreus objected to the confirmation. It argued the arbitrator exceeded his powers and failed to conduct the hearing as provided in A.R.S. § 12-1505 (2003). 1 See AR.S. § 12-1512(A)(3) and (4) (2003). Specifically, Atreus argued the arbitrator erred in concluding that he could rule by summary judgment under Section 9(f) of the JDA and Rule 45 of the AAA Rules because a summary judgment is a procedure and not a remedy or form of relief under those provisions.
¶ 10 Stardust replied that: (1) The superi- or court could not reverse the decision on the merits because refusal to confirm an award was limited to the grounds statutorily permitted in A.R.S. § 12-1512(A); and (2) The JDA and AAA Rules permitted summary
¶ 11 Atreus moved for leave to file a supplemental brief, arguing that because it had the burden of proof in objecting to confirmation of the arbitration award, it should be given an opportunity to respond to Stardust’s reply. Stardust objected, arguing that under A.R.S. § 12-1515 (2003), an application to confirm an arbitration award is treated as a motion and no authority supported allowing Atreus to file a surreply.
¶ 12 The superior court denied Atreus’s motion to file a surreply and confirmed the arbitration award. The court entered a judgment in favor of Stardust, including attorneys’ fees and costs in the amount of $176,727.60 for the arbitration proceedings and $13,175.90 for the confirmation proceedings. Atreus timely appealed. 2 We have jurisdiction pursuant to AR.S. § 12-2101.01(A)(6) (Supp.2011).
STANDARD OF REVIEW
¶ 13 Because Arizona's public policy favors arbitration to obtain a speedy and inexpensive disposition of a dispute, judicial review of an arbitration award is severely limited by statute.
Einhorn v. Valley Med. Specialists, P.C.,
¶ 14 The standard of review and procedure to review an arbitrator’s interpretation of the parties’ arbitration agreement and the arbitrator’s decision as to his powers is less clear. When parties dispute the arbitrator’s power in interpreting the arbitration agreement (at least to decide if an issue is arbitrable), the court must use the same standard used in resolving summary judgment motions: it must hold an evidentiary hearing unless the standard for granting summary judgment is met or neither of the parties requests an evidentiary hearing.
Brake Masters,
¶ 15 We need not decide what standard of review to use to determine if the arbitrator erred in determining he had the authority to grant summary judgment, which in this case is the arbitrator’s interpretation of the parties’ agreement. Under an abuse of discretion,
de novo,
or manifest disregard of the law standard, the arbitrator was authorized to award summary judgment under the JDA and AAA Rules.I.
3
Moreover, even if an evidentiary hearing is generally required to determine the arbitrator’s decision as to his powers,
Brake Masters,
DISCUSSION
¶ 16 Given the narrow judicial power to review substantive decisions by an arbitrator, supra ¶ 13, Atreus argues: (1) The arbitrator exceeded his powers by wrongfully denying it a hearing and granting summary judgment, and the superior court erred in confirming the award; and (2) The superior court wrongly denied it the opportunity to file a surreply to Stardust’s application for confirmation of the arbitration award. We disagree with Atreus.
I. The arbitrator did not err in finding he had the authority to grant summary judgment.
¶ 17 Atreus argues that because the JDA and AAA Rules do not explicitly authorize summary judgment, the arbitrator was prohibited from granting Stardust’s motion for summary judgment. Applying the reasoning in
Brake Masters,
we think that the JDA’s reference to and incorporation of rules is sufficient to preclude
First Options’
clear’ and convincing evidence standard to determine the arbitrator’s powers.
Brake Masters,
A. Applicable law.
¶ 18 The superior court must reverse a decision by an arbitrator that is outside the bounds of the parties’ agreement. A.R.S. § 12-1512(A)(3);
see Snowberger v. Young,
A Upon filing of a pleading in opposition to an award, and upon an adequate showing in support thereof, the court shall decline to confirm and award and enter judgment thereon where:
3. The arbitrators exceeded their powers;
4. The arbitrators ... refused to hear evidence material to the controversy or otherwise so conducted the hearing, contrary to the provisions of § 12-1505, as to prejudice substantially the rights of a party....
Section 12-1505, in turn, provides in pertinent part:
Unless otherwise provided by the agreement:
2. The parties are entitled to be heard, to present evidence material to the controversy and to cross-examine witnesses appearing at the hearing.
B. The JDA and the AAA Rules.
¶ 20 To determine the arbitrator’s powers in this ease, we start with the terms of the JDA and the AAA. Rules adopted by the JDA. As we held in
Brake Masters,
an arbitration agreement need not expressly address the issue of an arbitrator’s powers if the agreement incorporates by reference rules which address this issue.
¶ 21 While nothing in the JDA or AAA Rules addresses summary judgment, they both grant the arbitrator broad powers, including the power to grant any relief which a superior court could grant. Consistent with courts in other jurisdictions, we conclude those powers include the right to summary judgment. 4 Section 9(b) of the JDA provides that the AAA Rules apply while Section 9(f) gives the arbitrator “the authority to award any remedy or relief that a court of the State of A’izona could order or grant.” AAA Rule 45 also provides that the “arbitrator may grant any remedy or relief that the arbitrator deems just and equitable and within the scope of the agreement of the parties.” Additionally, AAA Rule 55 states: “The arbitrator shall interpret and apply [the AAA] rales insofar as they relate to the arbitrator’s powers and duties.”
¶ 22 Courts in other states have decided an arbitrator is authorized to grant summary judgment when the governing rules do not expressly address summary judgment in the arbitration proceeding. Those courts have
held that when the parties’ arbitration agreement and governing rules are silent as to whether an arbitrator can grant summary judgment, the arbitrator is authorized to do so unless the party opposing summary judgment is denied the fair opportunity to present its ease.
See Campbell v. Am. Family Life Assurance Co. of Columbus, Inc.,
¶ 23 We agree with the reasoning of the above eases that an arbitrator has the implied power to grant summary judgment. The purpose of arbitration is to permit parties to agree to a more expedited and less costly means to resolve disputes than litigation in the courts.
Harrington v. Pulte Home Corp.,
¶ 24 Atreus proffers four arguments to support its position that the JDA and AAA Rules do not permit an arbitrator to grant summary judgment. We disagree with Atreus’s arguments.
¶ 25 First, Atreus argues that Section 9(f) of the JDA and Rule 45 of the AAA Rules prohibit summary judgment. We disagree. Section 9(f) and the AAA Rules, respectively, authorize the arbitrator to grant any remedy or relief that an Arizona court could grant or any remedy or relief within the scope of the JDA. While “summary judgment” has been defined as a “[procedural device [for] ... the speedy disposition of a controversy without the need for a trial,” Black’s Law Dictionary 1476 (8th ed. 1999), Arizona courts employ a more general meaning to those terms, referring to summary judgment as a remedy or relief.
See Antonsen v. Superior Court,
¶ 26 Second, we disagree with Atreus’s argument that while the JDA authorized the application of the Arizona Rules of Civil Procedure, it did so only in the context of conducting discovery. Section 9(e) of the JDA provides:
The arbitrator shall afford to the parties a hearing and the right to conduct discovery in accordance with the Arizona Rules of Civil Procedure, submit evidence, with the privilege of cross-examination on the question at issue____
¶ 27 The reference to the rules of civil procedure is not limited to discovery. Rather, we construe Section 9(e) as requiring the arbitrator to afford the parties not only discovery in accordance with the rules of civil procedure but the hearing as well, which would implicitly allow the arbitrator to apply summary judgment where no material fact existed requiring an evidentiary hearing. This is consistent with the underlying purpose of arbitration and with AAA Rule 31, which grants the arbitrator the discretion to vary the manner in which the parties present evidence, provided the arbitrator affords “a full and equal opportunity to all parties for the presentation of any material and relevant evidence.”
5
A summary judgment proceeding affords the parties the opportunity to present material and relevant evidence, including the testimony of witnesses subject to cross-examination through depositions.
Campbell,
¶ 28 Further, AAA Rule 33 supports our conclusion that the AAA Rules envision an arbitrator granting summary judgment. That rule provides that “[t]he parties may offer such evidence as is relevant and material to the dispute and shall produce such evidence as the arbitrator may deem necessary to an understanding and determination of the dispute.” Rule 33 authorizes the arbitrator to determine what evidence is necessary to decide the matter at issue, implying that the arbitrator can determine when evidence presented is sufficient to resolve the dispute.
¶ 29 Third, Atreus contends the arbitrator could not grant summary judgment because an oral hearing is required by A.R.S. § 12-1505(2), which entitles the parties “to be heard, to present evidence material to the controversy and to cross-examine witnesses appearing at the hearing,” id., “unless otherwise pi’ovided by the agreement.” A.R.S. § 12-1505. We disagree.
¶ 30 Section 12-1505(2) gives the parties the right to cross-examine witnesses who appear at the hearing, but does not necessarily require a hearing.
See, e.g., Schlessinger,
¶ 31 Finally, Atreus argues that AAA Rule 39 provides for waiver of the hearing only on the parties’ agreement, which did not occur here. Rule 39 provides:
The parties may provide, by written agreement, for the waiver of oral hearings in any case. If the parties are unable to agree as to the procedure, the AAA shall specify a fair and equitable procedure.
Athough this provision provides a means for the parties to waive the hearing upon agreement, it does not address, and so does not preclude, one party from seeking summary judgment. Nor does it preclude the arbitrator, upon concluding that no issues of material fact exist, from determining that the matter can be resolved by summary judgment.
¶ 32 For the reasons stated above, the arbitrator did not err in granting Stardust’s motions for summary judgment and the superior court did not err in confirming the arbitrator’s award.
II. The superior court did not err in denying Atreus’s request to file a supplemental brief to respond to Stardust’s reply.
¶ 33 Atreus argues that the superior court erred in not permitting it to file a surreply to address Stardust’s arguments in its reply to its application for confirmation of the arbitration award. Atreus contends that, because it had the burden of proof to show that the award should not be confirmed, it should have been given “the last word.”
¶ 34 The party seeking confirmation of an award must file and serve an application in the same manner as complaints are filed and served in civil actions. AR.S. § 12-1511. The party opposing the confirmation must file a pleading and make an adequate showing in opposition based upon one of the grounds specified in A.R.S. § 12-1512. A.R.S. § 12-1512(A). The application, although served in the manner in which a summons is served, is treated as a motion “and shall be heard in the manner and upon the notice provided by law or rule of court for the making and hearing of motions.”
III. Award of attorneys’ fees and costs on appeal.
¶ 35 Pursuant to A.R.S. § 12-1514 (2003), Stardust seeks an award of its attorneys’ fees and costs on appeal. It is within the discretion of this Court to award attorneys’ fees on appeal.
Steer v.
Eggleston,
CONCLUSION
¶ 36 The superior court’s decision confirming the arbitration award is affirmed.
Notes
. A.R.S. § 12-1505 states in part: "The parties are entitled to be heard, to present evidence material to the controversy and to cross-examine witnesses appearing at the hearing.” A.R.S. § 12-1505(2).
. Atreus filed a premature appeal, which became timely upon the court’s ministerial act of signing the final judgment.
See Barassi v. Matison,
. At least one court has held that under the manifest disregard standard, an arbitrator’s erroneous interpretation of the law is not reversible unless the arbitrator understood and correctly stated the law and then proceeded to disregard it.
Collins v. D.R. Horton, Inc.,
. In cases where court-ordered arbitration is compulsory, Rule 74(c) of the Arizona Rules of Civil Procedure prohibits an arbitrator from granting a motion for summary judgment if doing so "would dispose of the entire case as to any party.” However, that rule does not apply here because the parties entered arbitration by agreement.
. This paragraph of Rule 31 provides:
The complaining party shall then present evidence to support its claim. The defending party shall then present evidence supporting its defense. Witnesses for each party shall
submit to questions or other examination. The arbitrator has the discretion to vary this procedure but shall afford a full and equal opportunity to all parties for the presentation of any material and relevant evidence.
. While the JDA provided for a mandatory award of reasonable attorneys' fees to the prevailing party, Stardust did not request an award of fees pursuant to that provision.
