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Coughlan Construction Co. v. Town of Rockport

Citations: 23 Mass. App. Ct. 994; 505 N.E.2d 203; 1987 Mass. App. LEXIS 1766

Court: Massachusetts Appeals Court; March 19, 1987; Massachusetts; State Appellate Court

Narrative Opinion Summary

The case involves a contractual dispute between Coughlan Construction Company, Inc. and Rockport, arising from a sewer construction contract dated April 10, 1978. The contract included arbitration provisions, which were invoked by Coughlan following a dispute, leading to an arbitration award in its favor. Rockport challenged the arbitration process and the award, alleging improper arbitrator selection and contract abandonment. However, the Superior Court confirmed the arbitration award, noting Rockport's failure to timely object to arbitrator appointments and finding no evidence of contract abandonment. Rockport also claimed bias in the arbitration process, but the court found these claims unsubstantiated. Coughlan sought confirmation of the award, including costs and interest. The court ruled that postjudgment interest would run from the award date, August 17, 1982, as no specific demand date was provided. The judgments were affirmed, emphasizing the finality and enforceability of the arbitrators' decision under the contract's arbitration clause. This decision underscores the importance of timely objections and the difficulty of overturning arbitration awards without clear evidence of procedural missteps or bias.

Legal Issues Addressed

Abandonment of Contract

Application: The court found no evidence of Coughlan's intent to rescind or abandon the contract, as arbitration was demanded regarding disputes despite claims of contract abandonment due to insurance issues.

Reasoning: Rockport also claimed the contract, including its arbitration provisions, was abandoned after Coughlan indicated it could not complete the contract due to insurance issues.

Arbitration Agreement and Res Judicata

Application: The Superior Court's order on April 14, 1981, compelling arbitration acted as res judicata regarding the validity of the arbitration provisions, as Rockport did not timely appeal this order.

Reasoning: Coughlan argued that the April 14, 1981, order compelling arbitration was res judicata regarding the validity of the arbitration provisions.

Arbitrator Selection and Objection

Application: Despite Rockport's claims, their participation in the arbitration process without timely objection to the arbitrators' appointment indicated acceptance of the arbitration process.

Reasoning: AAA appointed three arbitrators not listed, and Rockport failed to demonstrate any prior objection to this appointment before seeking a stay of arbitration in January 1981.

Bias and Partiality in Arbitration

Application: Rockport's claims of bias against an arbitrator and a tribunal administrator were rejected due to insufficient evidence, with the trial judge finding no influence on the arbitration process.

Reasoning: The trial judge reviewed Rockport's claims of bias against an arbitrator and a tribunal administrator, concluding that neither influenced the arbitration process.

Postjudgment Interest

Application: Postjudgment interest was determined to run from the arbitration award date, August 17, 1982, as the award did not specify a demand date for interest calculation.

Reasoning: Therefore, postjudgment interest will be calculated starting from the award date, August 17, 1982.