Opinion ID: 2077733
Heading Depth: 1
Heading Rank: 3

Heading: Issue Subject to Arbitration

Text: Purvis argued on appeal that the issue of attorney's fees was never submitted to the arbitrator, and therefore, the arbitrator exceeded his powers in rendering a decision on that issue. We reject this argument. The subcontract provided that  [a]ny controversy or claim arising out of or related to this contract or breach thereof, shall be settled by binding arbitration in accordance with the rules of the [AAA]. The parties further agree that all expenses of the arbitration shall be assessed against the losing party, and that said expense may be added to any judgment that may be entered. (Emphases added.) Not only did the subcontract call for the arbitration of [a]ny controversy or claim arising out of the subcontract, but in addition, Purvis's initial demand for arbitration sought a declaratory judgment to determine the parties' respective rights under the contract. Nothing in the language of the subcontract or in Purvis's demand suggests that the arbitrator was precluded from addressing attorney's fees. Moreover, although the AAA's Commercial Arbitration Rules (AAA rules) do not explicitly mention attorney's fees, rule 43, entitled Scope of Award, authorizes an arbitrator [to] grant any remedy or relief that the arbitrator deems just and equitable and within the scope of the agreement of the parties, including, but not limited to, specific performance of a contract. Therefore, the AAA rules, thearbitration clause in the subcontract, and Purvis's own demand for arbitration vested the arbitrator with broad authority to interpret the terms of the subcontract that provided in part: The parties further agree that all expenses of the arbitration shall be assessed against the losing party, and that said expense may be added to any judgment that may be entered. Furthermore, we have held that [t]he framing of the precise issue is a procedural problem that, as a matter of law, should be left to the arbitrator. Providence Teachers Union v. Providence School Committee, 440 A.2d 124, 128 (R.I.1982). As long as the agreement to arbitrate is valid and the subject matter of the dispute is arbitrable, the arbitrator may frame the issues to be decided. Id. Consequently, the arbitrator did not exceed his powers by addressing the issue of whether the subcontract term all expenses of the arbitration included attorney's fees. In so holding, we distinguish this case from State v. Rhode Island Alliance of Social Service Employees, Local 580, SEIU, 693 A.2d 1043, 1044 (R.I.1997) (mem.) (hereinafter SEIU ), in which this Court overturned an arbitrator's award of attorney's fees that we determined was punitive in nature. None of our prior decisions, including SEIU, suggests that an arbitrator would be precluded from awarding attorney's fees if such an award was authorized by a contract between the parties.