Opinion ID: 1225794
Heading Depth: 3
Heading Rank: 1

Heading: Refusal to Re-Open Hearing

Text: The Davidsons allege the trial court erred in refusing to vacate the award when the arbitrator refused to admit evidence that the contract that was the subject of the arbitration [was] illegal. Pet. for Review at 7. This contention is without merit. First, evidence regarding Hensen's registration status was, in fact, heard by the arbitrator. The basis of the Davidsons' claim is that Hensen was not properly registered when he entered into the remodel contract on January 25, 1994, relying on a belatedly received letter from the Department as conclusive proof of Hensen's noncompliance. However, the trial court found the issue of Hensen's registration was before the arbitrator and decided in Hensen's favor. The Davidsons do no more than make an untimely offer of evidence regarding an issue which has already been decided by the appropriate decision maker. See Northern State Constr. Co., 63 Wash.2d at 249, 386 P.2d 625 (an arbitrator becomes the judge of both the facts and the law); see also ML Park Place Corp. v. Hedreen, 71 Wash.App. 727, 742, 862 P.2d 602 (1993) (an arbitration award shall not be vacated if the appellant's argument cannot be decided without delving into the substantive merits of the claims), review denied, 124 Wash.2d 1005, 877 P.2d 1288 (1994). The Davidsons assume there has been a conclusive determination at some point in these proceedings that Hensen was not registered as required by RCW 18.27.080, the evidence they now have is conclusive as to that issue, and the underlying contract is illegal. There has been no such finding. At best, this new evidence merely conflicts with other evidence in this case and raises anew a fact issue regarding Hensen's registration. See Clerk's Papers at 189 (Hensen's registration card showing registration dates in conflict with the Department letter (Clerk's Papers at 191)); Report of Proceedings at 13, 20 (Hensen's purported testimony at the arbitration hearing confirming his registration). Hensen's attorney also asserted before the trial court that the Department letter conflicts with other information from the Department and confuses Hensen's histories under his specialty and general contractor's license. In any event, inquiry regarding this matter is neither possible nor appropriate, as no transcript of the arbitration exists and evidence before the arbitrator will not be considered by the court. Lindon, 57 Wash.App. at 816, 790 P.2d 228; Westmark, 53 Wash.App. at 402, 766 P.2d 1146 (citing Puget Sound Bridge & Dredging Co. v. Frye, 142 Wash. 166, 178, 252 P. 546 (1927)). Second, to the extent the Davidsons assert the arbitrator violated RCW 7.04.160 in declining to re-open the hearing to admit evidence counsel for the Davidsons obtained from the Department, their argument is without merit. The authority conferred upon the arbitrator by the American Arbitration Association Construction Industry Arbitration Rules is expansive. Rule 31 provides: 31. Evidence. The 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.... The arbitrator shall be the judge of the relevance and materiality of the evidence offered, and conformity to legal rules of evidence shall not be necessary. All evidence shall be taken in the presence of all of the arbitrators and all of the parties, except where any of the parties is absent in default or has waived the right to be present. Clerk's Papers at 177. Moreover, as to the specific question of the closing and re-opening of the hearing, Rule 35 provides: 35. Closing of the Hearing. The arbitrator shall specifically inquire of all parties whether they have any further proofs to offer or witnesses to be heard. Upon receiving negative replies or if satisfied that the record is complete, the arbitrator shall declare the hearing closed. Clerk's Papers at 177. Additionally, Rule 36 indicates the arbitrator has discretion to re-open the hearing: [t]he hearing may be re-opened on the arbitrator's initiative, or upon application of a party, at any time before the award is made ... Clerk's Papers at 177. We decline to overturn the arbitrator's award based on a refusal to re-open the hearing for additional evidence in light of Washington's strong policy favoring finality of arbitration awards and the broad authority conferred upon the arbitrator by the parties' agreement. Pegasus Constr. Corp. v. Turner Constr. Co., 84 Wash.App. 744, 929 P.2d 1200 (1997). Although the parties disagree as to how extensively the registration issue was pursued at the arbitration hearing, there is no dispute that evidence was indeed presented at the hearing on this issue. The parties placed the issue before the arbitrator who decided in Hensen's favor. The Davidsons had an opportunity to timely assert nonregistration before the arbitrator, but failed to do so. They agreed they had fully presented their case to the arbitrator on May 1, 1994, and made no attempt to postpone the closing of the hearing even though they had not received written documentation from the Department regarding Hensen's registration history. By failing to timely assert the affirmative defense of nonregistration, they waived it. [4]