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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
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NO. COA02-297
NORTH CAROLINA COURT OF APPEALS
Filed: 17 December 2002
MAROLF CONSTRUCTION INC.,
Petitioner
v
.
ALLEN'S PAVING COMPANY,
Respondent
Appeal by respondent from order entered 16 November 2001 by
Judge Marvin K. Gray in Mecklenburg County Superior Court. Heard
in the Court of Appeals 31 October 2002.
Johnston, Allison & Hord, P.A., by Greg C. Ahlum and Alicia
Almeida Bowers, for petitioner-appellee.
Gabriel, Berry & Weston, L.L.P., by Richard W. Gabriel and
Robert A. Wells, for respondent-appellant.
CAMPBELL, Judge.
Respondent appeals from an order entered 16 November 2001
denying respondent's motions to dismiss and confirming an
arbitration award. Respondent, a subcontractor, entered into a
contract with petitioner, a general contractor, on 23 July 1999.
A dispute arose between the parties, and petitioner chose to
pursue a resolution through arbitration. On 6 December 1999,
petitioner made a demand for arbitration. Thereafter, the case
manager from the American Arbitration Association (AAA)
communicated with the parties by: a letter, sent through regular
mail, of a postponement of a deadline; a letter, via facsimile, of
appointment of an arbitrator; and a letter, via United ParcelService (UPS) overnight delivery, scheduling a preliminary
hearing. The case manager sent by certified mail and signed for by
Allen Willett (Willett), for respondent, Allen's Paving Company,
a letter confirming that a preliminary hearing had been held, and
notifying respondent of the time and place for the arbitration
hearing. Following the hearing, the case manager sent a letter,
via certified mail and signed for by Willett for respondent,
confirming the hearing was held, and notifying respondent that the
arbitrator's decision was due within two weeks. Lastly, the case
manager sent the arbitration award, via certified mail and signed
for by Willett for respondent. Thereafter, respondent contacted
the case manager and asked to have the case re-arbitrated. The AAA
responded that it considered the matter closed.
On 22 February 2001, petitioner filed a petition for a
confirmation of the arbitration award. Respondent timely filed a
response to the petition. Thereafter, respondent filed a motion to
dismiss because in the caption of the arbitration award petitioner
was referred to as Marolf Construction Company and not Marolf
Construction, Inc., and a motion to dismiss for lack of service of
process and lack of jurisdiction. Petitioner filed a clarification
by the arbitrator stating that Marolf Construction Company was
error, and meant to refer to petitioner, Marolf Construction, Inc.
A hearing on the matter was held on 14 November 2001. On 16
November 2001, Judge Marvin K. Gray ordered the arbitration award
confirmed for Marolf Construction, Inc., and denied respondent's
motions to dismiss. Respondent appeals. Respondent asserts the trial court erred by (I) failing to
vacate the arbitration award for lack of service of process and
(II) confirming the arbitration award with correction of
petitioner's name.
I. Service of Process
Respondent asserts the trial court erred by failing to dismiss
petitioner's petition for confirmation of the arbitration award due
to lack of service of process. Respondent argues the Uniform
Arbitration Act, codified in North Carolina General Statutes
Chapter 1, Article 45A , controls. Regarding the hearing, the
statute provides: Unless otherwise provided by the agreement: (1)
The arbitrators shall appoint a time and place for the hearing and
cause notification to the parties to be served personally or by
registered mail not less than five days before the hearing. N.C.
Gen. Stat. § 1-567.6 (2001) (emphasis added). Regarding
notification of the award, the statute provides: The arbitrators
shall deliver a copy to each party personally or by registered
mail, or as provided in the agreement. N.C. Gen. Stat. § 1-567.9
(2001) (emphasis added).
Petitioner asserts the contract provided for the rules of the
AAA to govern service of process. The contract provided, in
pertinent part, that if a dispute should arise between the parties,
then Contractor shall have the option to (a) litigate the matter
in a court of competent jurisdiction in Mecklenburg County, N.C.,
or (b) settle the matter by arbitration in Mecklenburg County, N.C.in accordance with the American Arbitration Association's
Construction Industry Arbitration Rules, then in effect.
The AAA's Construction Industry Rule 40, as in effect during
this time period, provided for service as follows:
Each party shall be deemed to have consented
that any papers, notices, or process necessary
or proper for the initiation or continuation
of an arbitration under these rules; for any
court action in connection therewith; or for
the entry of judgment on any award made under
these rules, may be served on a party by mail
addressed to the party or its representative
at the last known address or by personal
service, in or outside the state where the
arbitration is to be held, provided that
reasonable opportunity to be heard with regard
thereto has been granted to the party.
The AAA, the parties, and the arbitrator may
also use overnight delivery, electronic
facsimile (fax), telex, and telegram. Where
all parties and the arbitrator agree, notices
may be transmitted by electronic mail
(E-mail), or other method of communication.
Moreover, Rule 46 controls delivery of the award to the parties,
and provides: [p]arties shall accept as legal delivery of the
award the placing of the award or a true copy thereof in the mail
addressed to a party or its representative at the last known
address, personal service of the award, or the filing of the award
in any other manner that is permitted by law.
Petitioner is correct in his assertion that N.C. Gen. Stat. §
1-567.6's language [u]nless otherwise provided by the agreement
permits the parties to make an agreement to follow rules other than
those provided in the statute. In this case, the parties agreed to
follow the AAA rules for the construction industry. Therefore, the
issue is whether or not petitioner and the case manager for the AAAproperly served respondent in accordance with these AAA rules. The
case manager for the AAA served respondent via facsimile, UPS
overnight delivery, and certified mail to respondent's last known
address, all of which are permitted by the AAA rule in effect at
the time. Therefore, we find the trial court did not err in
denying respondent's motion to dismiss for failure to properly
serve respondent.
II. Clarification of petitioner's name
Respondent asserts the trial court erred by confirming the
award of the arbitrator in favor of petitioner, Marolf
Construction, Inc. The arbitrator erred in the caption of the
award by referring to petitioner as Marolf Construction Co. rather
than Marolf Construction, Inc. Respondent argues that since the
award was not corrected within ninety days, pursuant to N.C. Gen.
Stat. § 1-567.14 (2001), the trial court should not have confirmed
the award. Respondent is incorrect. This Court held recently that
where the ninety-day limitation had expired, the trial court may
nevertheless examine the record and interpret an ambiguous term in
an arbitration award.
General Accident Ins. Co. of Am. v. MSL
Enters., Inc., 143 N.C. App. 453, 460, 547 S.E.2d 97, 101,
disc.
review denied, 354 N.C. 217, 553 S.E.2d 402 (2001). We hold the
trial court may likewise examine the record and correct a clerical
error.
A clerical error is '[a]n error resulting from a minor
mistake or inadvertence, esp. in writing or copying something on
the record, and not from judicial reasoning or determination.'
State v. Jarman, 140 N.C. App. 198, 202, 535 S.E.2d 875, 878 (2000)(quoting Black's Law Dictionary 563 (7th ed. 1999)). Here, the
arbitrator's reference to petitioner as Co. instead of Inc. is a
clerical error and was properly corrected by the trial court.
Affirmed.
Judges WALKER and McCULLOUGH concur.
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