Opinion ID: 1473775
Heading Depth: 1
Heading Rank: 4

Heading: The Duryee Appraisal

Text: The defendant maintains that the hearing justice should have vacated Duryee's award because, he alleges, Duryee exceeded the scope of his authority by utilizing extraneous material in violation of the submission of the parties. Additionally, Marandola argues that Duryee did not perform an independent appraisal because he worked with Anderson, in violation of the agreement. Marandola argued to the Superior Court hearing justice that by utilizing data and materials extraneous from the work of the first two appraisers Duryee impermissibly performed his own independent appraisal, and further, by allowing a manager in his office to assist him in reaching an award, Duryee violated the terms of the submission of the parties. The trial justice found that Marandola failed to prove these allegations, that he failed to establish that Duryee exceeded his authority by utilizing materials beyond those anticipated by the agreement and, further, the hearing justice found that including Anderson's signature on the appraisal was without any legal significance. We agree with these conclusions. Pursuant to G.L.1956 § 10-3-12, an arbitration award may be set aside in limited circumstances, including cases in which the arbitrator, as alleged herein, has exceeded his powers by manifestly disregarding contractual provisions agreed upon by the parties. State Department of Children, Youth and Families v. Rhode Island Council 94, American Federation of State, County, and Municipal Employees, AFL-CIO, 713 A.2d 1250, 1253-54 (R.I.1998). To successfully challenge an arbitration award, the claimant has the burden of demonstrating that the arbitrator has exceeded his powers sufficient to warrant setting aside the award. Marandola maintains that Duryee was restricted to the materials submitted by the parties in formulating his opinion and was not permitted to embark upon his own appraisal. This argument fails to recognize, however, that the consent order entered in the Superior Court permitted each party to conduct discovery and to submit further information to the arbitrator. Further, the record discloses that the arbitrator was directed to review the deposition testimony of the previous appraisers as an appropriate check upon the accuracy and credibility of the information upon which they relied. Thus, we are not persuaded that Marandola has sustained his burden of establishing that the arbitrator exceeded his powers. Duryee's mission was to render an opinion about the fair market value of the dealerships based upon the materials submitted by the parties. Although Marandola may not agree with that opinion, he is nonetheless bound by it. The defendant's last argument is that the arbitration award must be set aside because Anderson signed the award as Duryee's office manager. The hearing justice determined that this signature was without legal significance. We agree with this conclusion and note that Marandola failed to produce any evidence tending to prove that Anderson acted in any capacity other tha n as a witness to the execution of the document. Therefore, Marandola has failed in his burden of proof on this issue. Accordingly, for the reasons stated herein, the defendant's appeal is denied and dismissed. The judgment of the Superior Court is affirmed. The papers in this case may be remanded to the Superior Court.