Spaw-Glass Const. Services, Inc. v. Vista De Santa Fe, Inc., SPAW-GLASS

• Docket Nº: No. 20398
• Citation: 1992 NMSC 67, 844 P.2d 807, 114 N.M. 557
• Case Date: December 10, 1992
• Court: Supreme Court of New Mexico

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844 P.2d 807 114 N.M. 557 SPAW-GLASS CONSTRUCTION SERVICES, INC.,
Plaintiff-Petitioner,
v.
VISTA De SANTA FE, INC., Defendant-Respondent. No. 20398. Supreme Court of New Mexico. Dec. 10, 1992.
Rehearing Denied Jan. 11, 1993.

[114 N.M. 557] Sheehan, Sheehan & Stelzner, P.A., Timothy M. Sheehan, Kim A. Griffith, Albuquerque, Clark, Thomas, Winters & Newton, Mark T. Mitchell, John F. Williams, Austin, Tex., for plaintiff-petitioner.

Love & McClelland, Jack L. Love, Albuquerque, for defendant-respondent.

OPINION

FRANCHINI, Justice.

Spaw-Glass Construction Services, Inc. (Spaw), appeals from a partial summary judgment in favor of Vista De Santa Fe, Inc. (Vista), dismissing Spaw's petition to confirm an arbitration award pursuant to NMSA 1978, Section 44-7-11. Because

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[114 N.M. 558] this case involves an important issue and an immediate appeal would advance the ultimate termination of this case, we granted Spaw's application for interlocutory appeal. See SCRA 1986, 12-203 (Repl.Pamp.1992). We reverse the district court and remand for entry of the arbitration award.

I.

The undisputed facts pertinent to our disposition of this appeal are as follows. On August 24, 1988, Spaw and Vista entered into two separate contracts for the construction of a retirement center. On November 9, 1989, the project was substantially completed. In April of the next year, Spaw filed a breach of contract action in Texas. Vista rejected this judicial forum, and instead demanded arbitration based on the following contract provision: "Any controversy or Claim arising out of or related to the Contract, or the breach thereof, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association * * *."

A four-day arbitration hearing was held in front of an American Arbitration Association panel. At the conclusion of the process, the panel rejected Vista's claims and entered an award in favor of Spaw in the amount of approximately $164,000.

On June 19, 1991, Spaw filed an enforcement action to reduce the arbitration award to judgment in accordance with the provisions set forth in the Uniform Arbitration Act, NMSA 1978, Sections 44-7-1 to -22 (Arbitration Act). Spaw filed a Motion for Summary Judgment seeking confirmation and entry of judgment on the arbitration award. Sec. 44-7-11. Vista in turn filed a Motion for Partial Summary Judgment, asserting that Spaw was barred from bringing suit because it was not a licensed contractor at certain times material as required by the Construction Industries Licensing Act, NMSA 1978, Sections 60-13-1 to -59 (Repl.Pamp.1989) (CILA). Vista relied on Section 60-13-30(A) of the CILA which prohibits a contractor from bringing "any action * * * for the collection of compensation * * * without alleging and proving that such contractor was a duly licensed contractor at the time the alleged cause of action arose."

The district court held a hearing on the summary judgment motions and issued a Memorandum Decision on December 2, 1991. After denying a Motion to Reconsider, the district court issued an Amended Memorandum Decision on January 21, 1992. The court concluded that Spaw was not duly licensed at the time its cause of action arose, thereby bringing it within the prohibition of Section 60-13-30. The district court further determined that the "arbitration itself is a nullity because one of the participants, Spaw-Glass, had no right to participate." On January 29, 1992, the court issued an Order denying Spaw's Motion for Summary Judgment and for Reconsideration and granting Vista's Motion for Partial Summary Judgment, based on the determinations set forth in the Amended Memorandum Decision.

II.

On appeal, Spaw argues that the district court erred when it set aside a final arbitration award based on Spaw's alleged violation of the CILA. We agree.

We recognize New Mexico's strong public policy encouraging dispute resolution through arbitration and favoring finality and strictly limited court review of arbitration awards. See, e.g., State ex rel. Hooten Constr. Co. v. Borsberry Constr. Co., 108 N.M. 192, 193, 769 P.2d 726, 727 (1989); Dairyland Ins. Co. v. Rose, 92 N.M. 527, 530, 591 P.2d 281, 284 (1979). We must exercise "great caution when asked to set aside an arbitration award, which is the product of the theoretically informal, speedy and inexpensive process of arbitration, freely chosen by the parties." Hooten, 108 N.M. at 193, 769 P.2d at 727. The function of a trial court is not to hear a case de novo. I...