Advanced Building Products & Services, LLC v. Capstone Building Corp.
Filing
14
ORDER AND REASONS that plaintiff's application for confirmation of the award is GRANTED, and judgment is entered on that award. The arbitration award entered on March 15, 2012, in favor of Advanced Building Products & Services, LLC against Capstone Building Corporation, is hereby made the judgment of this Court. Signed by Chief Judge Sarah S. Vance on 11/16/2012.(lag, )
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
ADVANCED BUILDING PRODUCTS &
SERVICES, LLC
CIVIL ACTION
VERSUS
NO: 12-2273
CAPSTONE BUILDING CORPORATION
SECTION: R
ORDER AND REASONS
Advanced Building Products & Services, LLC (“Advanced”),
seeks confirmation of an arbitration award. Capstone Building
Corporation (“CBC”), objects. For the following reasons, the
arbitration award is confirmed.
I.
BACKGROUND
CBC was the general contractor for a project to build
dormitories at Southeastern Louisiana University. Advanced
contracted with CBC to supply the windows. There were three
contracts between Advanced and CBC, all of which took place in
2004.1
Advanced never took possession of the windows, nor did it
design or inspect them. Instead, the widows were shipped directly
from the manufacture’s factory to the construction site. Advanced
provided a one year warranty, which began when the work was
1
R. Doc. 1-3; R. Doc. 1-4; R. Doc. 1-5.
substantially complete on August 1, 2005.2 Advanced was not
notified of a defect during this one year period.
In 2009, University Facilities, Inc. (“UFI”) initiated an
arbitration proceeding naming CBC as a respondent. CBC filed an
arbitration demand against Advanced in 2010. CBC demanded defense
and indemnification from Advanced pursuant to the purchase
orders, because Advanced “fail[ed] to properly design and install
appropriate windows to prevent water and moisture intrusion.”3
Advanced moved for Summary Judgment on the grounds that CBC’s
claims were prescribed under Louisiana law.
The arbitration panel granted Advanced’s motion. It reasoned
that Louisiana Civil Code Art. 2534 provides a that an action
against a seller must be brought within four years of delivery or
within one year of the discovery of the defect, whichever comes
first.4 In this case, if this provision applied, CBC’s claim
would have been prescribed in 2008. The arbitration panel held
that this prescription period did apply, because CBC’s claims
against Advanced “arise out of a vendor/vendee relationship and
are based on alleged defects in the things sold.”5
2
R. Doc. 1-2 at 2.
3
Id. at 3.
4
Id.
5
Id.
2
The arbitration panel did not credit CBC’s argument that its
claims were claims for indemnification and therefore subject to a
ten-year prescription period. The panel reasoned: “CBC’s claims
against Advanced are based on alleged defects in the widows sold
by Advanced, and arise from their contracts of sale.”6 In ruling
for Advanced, the arbitration panel granted that “all claims and
demands by Capstone Building Corporation against Advanced
Building Products & Services, LLC [be] hereby denied and
dismissed.”7
Advanced now seeks confirmation of the arbitration award.8
II.
DISCUSSION
The Federal Arbitration Act provides that a party to an
arbitration may apply to the court for an order confirming an
arbitration award, and that, “the court must grant such an order
unless the award is vacated, modified, or corrected.” 9 U.S.C. §
9. An application for confirmation cannot be denied except in the
most extraordinary of circumstances, and confirmation “is
designed to be a summary procedure that makes the final
arbitration award a judgment of the court.” UBS PaineWebber Inc.
6
Id. at 4.
7
Id. at 5.
8
R. Doc. 1-1.
3
v. Stone, NO. Civ. A. 02-2025, 2002 WL 1791969, at *2 (E.D. La.
Aug. 1, 2002).
CBC did not argue that the award be vacated or modified.9
Nor could it, as the extreme circumstances outlined in Title 9,
United States Code Section 10 are not present in this case.
Instead, CBC argues that confirmation be denied because its
actions in indemnity against Advanced are not prescribed. CBC
further submits that the Court “only confirm the Ruling of the
Arbitrators dated March 15, 2012, and grant no additional relief
to Advanced.”10 CBC’s objection seems to suggest that its
indemnification claim against Advanced should not be dismissed.
But the arbitration panel addressed and rejected this argument
when it held that their claims were not a “contract action
indemnity.”11 The arbitration panel dismissed “all claims and
demands” by CBC against Advanced.
The arbitration panel’s decision reflects a thorough
consideration of the record and the parties’ arguments. CBC had a
full and fair opportunity to present its case before the
arbitration panel. Accordingly, this award may be summarily
confirmed.
9
R. Doc. 10 at 3.
10
Id.
11
R. Doc. 1-2 at 4.
4
III. CONCLUSION
For the foregoing reasons, plaintiff’s application for
confirmation of the award is GRANTED, and judgment is entered on
that award. The arbitration award entered on March 15, 2012, in
favor of Advanced Building Products & Services, LLC against
Capstone Building Corporation, is hereby made the judgment of
this Court.
New Orleans, Louisiana, this 16th day of November, 2012.
__
_________________________________
SARAH S. VANCE
UNITED STATES DISTRICT JUDGE
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