The opinion of the court was delivered by: Joyner, J.
This action has been brought before this Court on Petition of Jeffrey
M. Brown Associates, Inc. to Vacate Arbitration Award and the
Cross-Motion to Confirm Arbitration Award of Respondent, Allstar Drywall
& Acoustics, Inc. For the reasons outlined below, the petition to vacate
shall be denied and the motion to confirm shall be granted.
This case has its origins in a contract which Petitioner (hereinafter
"JMB") entered into with the Center for Nursing and Rehabilitation for
renovations to one of its facilities located in Brooklyn, New York.
Thereafter, on or around June 18, 1998, JMB entered into a subcontract
with Respondent Allstar Drywall & Acoustics, Inc. ("Allstar") whereby
Allstar would furnish the labor, materials, equipment and other
incidentals necessary to complete the drywall installation, rough
carpentry work, taping and acoustical ceiling installation in exchange
for payment by JMB of the sum of $880,000.
On or about October 8, 1999, JMB commenced suit against Allstar in the
Court of Common Pleas of Philadelphia County for breach of contract and
breach of warranty alleging that Allstar had failed to perform its
obligations under the agreement and that this failure caused JMB to
retain other subcontractors to finish the job costing it an additional
$323,664. JMB further alleged that it overpaid Allstar for work which it
did not perform in the amount of $312,104. Allstar counter-claimed
against JMB, alleging that it was still owed the balance due on the
revised contract price in the amount of $158,207 and that as a
consequence of JMB's failure to perform its obligations under the
agreement, Allstar incurred additional labor and other costs in the
amount of $358,809.
In August, 2000, the parties agreed to submit their dispute to binding
arbitration to be conducted in accordance with the rules of the American
Arbitration Association and "other state and federal rules," and filed an
Order to mark the Philadelphia action discontinued and ended. Following
some nine hearings between August 21 and October 5, 2001, the arbitrator
issued his decision on January 2, 2002 in which he found in favor of
Allstar in the net amount of $173,341.*fn1 It is this award which JMB
now seeks to vacate and Allstar seeks to confirm.
By its petition, JMB avers that the arbitration award should be vacated
because the arbitrator erred in (1) not awarding JMB its attorneys' fees
on its affirmative claims, (2) failing to find that the several partial
releases barred Allstar's claims for an equitable adjustment, and (3)
failing to find that Allstar's claim for inefficiencies was devoid of
It is clear and the parties agree that this action is governed by the
provisions of the Federal Arbitration Act, 9 U.S.C. § 1, et. seq.
Confirmation and vacation of arbitration awards are determined under
Sections 9 and 10 of the Act, which reads as follows in relevant part:
§ 9. Award of arbitrators; confirmation; jurisdiction; procedure
If the parties in their agreement have agreed that a judgment of the
court shall be entered upon the award made pursuant to the arbitration,
and shall specify the court, then at any time within one year after the
award is made any party to the arbitration may apply to the court so
specified for an order confirming the award, and thereupon the court must
grant such an order confirming the award, and thereupon the court must
grant such an order unless the award is vacated, modified, or corrected
as prescribed in sections 10 and 11 of this title. If no court is
specified in the agreement of the parties, then such application may be
made to the United States court in and for the district within which such
award was made. Notice of the application shall be served upon the
party, and thereupon the court shall have jurisdiction of such
party as though he had appeared generally in the proceeding. . . .
§ 10 Same; vacation; grounds; rehearing
(a) In any of the following cases the United States
court in and for the district wherein the award was
made may make an order vacating the award upon the