Summary
The North Dakota Supreme Court affirmed a district court judgment confirming an arbitration award in favor of James Valley Grain, LLC. The Court held that the defendant forfeited statutory grounds for vacating the award by failing to file a motion within 90 days after receiving notice, and that filing or responding to a motion to confirm did not extend that deadline.
Topics
Practice areas
Questions Presented
- Whether filing a motion to confirm an arbitration award within the statutory 90-day period extends the time for the opposing party to move to vacate the award.
- Whether a party may challenge an arbitration award in opposition to confirmation after the 90-day deadline for filing a motion to vacate has expired.
- Whether the district court properly confirmed the arbitration award despite David's arguments concerning the existence of an arbitration agreement and the arbitration panel's application of law and arbitration rules.
Holdings
- Filing a motion to confirm an arbitration award does not extend the statutory 90-day period for filing a motion to vacate the award under N.D.C.C. § 32-29.3-23(2).
- David waived the grounds for vacating the arbitration award under N.D.C.C. § 32-29.3-23(1)(a)-(f) by failing to raise them within 90 days after receiving notice of the award.
Key quotations
“Based on the language in North Dakota’s statute and the policy behind arbitration, we agree with the majority of jurisdictions holding that filing a motion to confirm an arbitration award does not extend the time limit for moving to vacate the award.” (¶ 16)
“We conclude David waived the grounds for vacating an arbitration award under N.D.C.C. § 32-29.3-23(1)(a)-(f) by failing to raise them within ninety days from receiving notice of the arbitration award.” (¶ 18)
Factual background
James Valley Grain and David entered into soybean-sale contracts for the 2008 growing season. James Valley alleged David improperly cancelled the contracts and sued for anticipatory repudiation, breach of contract, and promissory estoppel. The contracts incorporated the National Grain and Feed Association rules, and the district court compelled arbitration. After the arbitration panel awarded damages to James Valley, David challenged the award during the confirmation proceedings rather than filing a timely motion to vacate.
Procedural history
James Valley Grain sued Loren David for damages arising from alleged cancellation of soybean contracts. The district court compelled arbitration after finding the arbitration clause was incorporated into the contracts and was not unconscionable. After the arbitration panel awarded damages to James Valley Grain, the district court confirmed the award. David opposed confirmation and sought to challenge the award, but did not file a motion to vacate within 90 days after receiving notice of the award. The North Dakota Supreme Court affirmed.