Opinion ID: 2631026
Heading Depth: 1
Heading Rank: 5

Heading: The Oklahoma Uniform Arbitration Act

Text: ¶ 22 We now turn to whether the district court had authority to vacate the arbitrator's refusal to award prevailing party attorney fees under the subcontracts. As already determined, the subcontracts are governed by Oklahoma law. In 2005, Oklahoma adopted a modified version of the Uniform Arbitration Act of 2000. 12 O.S.Supp. 2005, §§ 1851-1881. It may be cited as the Uniform Arbitration Act, 12 O.S.Supp. § 1851, referred to herein as the OUAA. Although the subcontracts were entered into and Sooner's contract claim arose before the OUAA became effective on January 1, 2006, the newly enacted OUAA is applicable in this case for two reasons. First, the Legislature expressly provided that the 2005 OUAA applied to arbitration agreements made prior to its enactment. [10] Second, arbitration is a form of procedure, Wilson v. Gregg, 1952 OK 464, 208 Okla. 291, 255 P.2d 517; City of Muskogee v. Martin, 1990 OK 70, 796 P.2d 337, and procedural law is presumed to be applicable to pending cases absent an express legislative intent to the contrary. Thomas v. Cumberland Operating Co., 1977 OK 164, ¶ 4, 569 P.2d 974, 976; Cole v. Silverado Foods, Inc., 2003 OK 81, ¶ 8, 78 P.3d 542, 546. ¶ 23 The OUAA authorizes the district courts to vacate or modify an arbitrator's award on specific grounds. 12 O.S.Supp. 2005, § 1874. [11] The district court may vacate an arbitrator's award if the district court finds: 1) there was no arbitration agreement, 2) the award was procured by corruption, fraud, or other undue means, 3) there was evident partiality, corruption, or prejudicial misconduct by the arbitrator, 4) the arbitrator exceeded the arbitration power, or 5) notice of the arbitration was inadequate. 12 O.S.Supp.2005, § 1874(A). Where there is an agreement to arbitrate and the district court vacates an award on any of the other enumerated grounds, the district court has the discretion to order a rehearing before an arbitrator, 12 O.S.Supp.2005, § 1874(C), or to modify the award. 12 O.S.Supp.2005, § 1876. [12] ¶ 24 The parties' agreement is the source of the arbitrator's power. Alexander v. Gardner-Denver Co., 415 U.S. 36, 53, 94 S.Ct. 1011, 1022, 39 L.Ed.2d 147 (1974). The parties' agreement may give the arbitrator broad power, and it may confine and limit the arbitrator's power. The arbitrator serves as the proctor of the parties' agreement and has the obligation to effectuate the intent of the parties' agreement. Id. When the arbitrator's award manifests an infidelity to the parties' agreement, the courts must refuse to enforce the award. Id. ¶ 25 Here, the parties' agreement mandates the arbitrator to award attorney fees and expenses to the prevailing party. It leaves no discretion to the arbitrator to deny attorney fees to the prevailing party. In ruling on Sooner's motion to modify, the arbitrator ignored the parties' agreement and fashioned his own rule that no prevailing party attorney fees will be awarded if any fault is attributable to each of the parties. The arbitrator's ruling is contrary to the parties agreement, it exceeds the arbitrator's power, and the award may be properly vacated under § 1874(A)(4). ¶ 26 We are mindful that the arbitration statutes, like arbitration agreements, are viewed as a shortcut to substantial justice with minimum court interference, Garner v. City of Tulsa, 1982 OK 104, ¶ 21, 651 P.2d 1325, 1328, and that a fundamental purpose of arbitration is to preclude court intervention into the merits of disputes which the parties have agreed to submit to arbitration. Voss v. City of Oklahoma City, 1980 OK 148, ¶ 5, 618 P.2d 925, 927-928. A court will, however, intervene when it is evident that the arbitrator has ignored the parties' agreement. In vacating the arbitrator's award, the district court found the arbitrator manifestly disregarded the law by ignoring the parties' agreement on attorney's fees, costs, charges and expenses of arbitration.