Toll Naval Associates v. Chun-Fang Hsu

Summary

The Pennsylvania Superior Court reviewed an appeal concerning confirmation of a common-law arbitration award arising from a condominium square-footage dispute. The court held that Toll was not denied a hearing because it had requested that the preliminary release issue be decided on the parties’ written submissions, and that the arbitrator’s interpretation of the settlement agreement was not a cognizable procedural irregularity. The court affirmed the judgment confirming the arbitration award and vacated a later trial court order concerning docket consolidation.

Holdings

1. A party may relinquish its right to a hearing in arbitration on a purely legal issue by affirmatively requesting the arbitrator decide the matter on submissions without a formal hearing.
2. Arbitrator's interpretation of settlement agreement, even if arguably erroneous, does not constitute grounds to vacate award under 42 Pa.C.S. § 7341 because arbitrators are final judges of both law and fact.
3. Trial court's March 18, 2013 order is vacated.

Questions Presented

1. Whether the trial court erred in denying petition to vacate arbitration award where arbitrator ruled on enforceability of settlement agreement without affording hearing
2. Whether trial court erred in denying petition to vacate where arbitrator ignored plain language of settlement agreement containing general release
3. Whether trial court erred in denying petition to vacate where award violates public policy favoring settlement
4. Whether trial court erred in denying petition to vacate where award is unjust, inequitable or unconscionable
5. Whether trial court's March 18, 2013 order violated Pa. R.A.P. 1701

Disposition

affirmed