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White V Kampner
White V Kampner
This appeal raises two principal issues: (1) whether the In December, 1990, the parties found themselves in a
agreements entered into by the parties empowered the contract dispute. The defendants, alleging that the plaintiff
arbitrator to determine the arbitrability of their contractual had been dishonest in his management of the business,
dispute; and (2) if not, whether, after seasonable objections terminated the plaintiff's employment. Initially, both parties
to arbitrability, the voluntary submission of that issue to desired to negotiate, but after some delay not the sole
the arbitrator constituted a waiver. The trial court vacated fault of either party, the plaintiff filed a written demand
an arbitration award in favor of the plaintiff, Dennis E. for arbitration with the American Arbitration Association
White, and against the defendants, Philip and Helen Kampner. (arbitration association).
The plaintiff appealed to the Appellate Court, and that
[3] We initially note that, because we favor arbitration, we In Frager v. Pennsylvania General Ins. Co., 155
will defer to this alternative method of dispute resolution if the Conn. 270, 275–77, 231 A.2d 531 (1967), an insurance
contractual arbitration provisions fall *473 within the grey contract contained an agreement to arbitrate subject to the
area of arbitrability, employing the “positive assurance” test determination of the existence of the condition precedent
that the insured's automobile involved in the accident had
as set out in United Steelworkers of America v. Warrior
& Gulf Navigation Co., 363 U.S. 574, 582–83, 80 S.Ct. 1347, contact with the automobile of an uninsured motorist. 9 The
1353, 4 L.Ed.2d 1409 (1960). Under this test, “ ‘judicial plaintiff claimed that the arbitrator had been authorized under
inquiry ... must be strictly confined to the question whether the contract to determine the threshold issue of arbitrability
the reluctant party did agree to arbitrate the grievance.... —that is, whether there was the required contact between
An order to arbitrate the particular grievance should not be the automobiles. Id., at 277, 231 A.2d 531. This court
denied unless it may be said with positive assurance that disagreed. “Since the question of contact was a condition
the arbitration clause is not susceptible of an interpretation precedent to arbitrability, it should not, itself, have been
that covers the asserted dispute. Doubts should be resolved adjudged to be arbitrable.” Id. Likewise, in the present case,
in favor of coverage.’ ” (Emphasis in original.) **1385 there is a contractual requirement of mandatory negotiation
Board of Education v. Frey, 174 Conn. 578, 582, 392 A.2d sessions that is a precondition to the arbitrability of any
dispute, and the arbitration was limited to those issues that
466 (1978), quoting United Steelworkers of America
were “not resolved” under the mandatory negotiations. 10
v. Warrior & Gulf Navigation Co., supra, 582–83, 80 S.Ct.
at 1353. Nevertheless, the contractual language in this case
*475 We conclude that the mandatory negotiation sessions
does not fall within the grey area and, therefore, the positive
constituted a condition precedent **1386 to arbitration, and
assurance test is not applicable.
the determination of whether these sessions were held was
not part of the contractual submission. Accordingly, under the
[4] [5] The trial court correctly interpreted the contractual
contractual language, the issue of arbitrability in this case was
language to require satisfaction of the provisions of the
one for the trial court.
mandatory negotiation clause as a condition precedent to
arbitration, and correctly determined that this arbitrability
issue was one for the courts to determine, not the arbitrator.
Although the arbitration clause begins with broad language II.
that generally grants jurisdiction to the arbitrator to determine
Our analysis does not end with our interpretation of
the issue of arbitrability; Welch Group, Inc. v. Creative
the contractual language, because the parties did proceed
Drywall, Inc., supra, 215 Conn. at 467, 576 A.2d 153; express
to arbitration, and the trial court found that the parties
language in the contract restricts the breadth of that clause.
had submitted the issue of arbitrability to the arbitrator.
The arbitration provision that makes arbitrable “[a]ny dispute
The plaintiff argues that, under these circumstances, the
or question arising under the provisions of this [agreement]”
is qualified by the clause “which has not been resolved under
Footnotes
1 We certified the following issue for review: “Where parties to a contract make the authority of an arbitrator
to act conditional on the completion of two mandatory negotiation sessions prior to arbitration, and it
is undisputed that neither mandatory negotiation session ever took place, and it is undisputed that the
defendants never waived their challenge to the arbitrator's authority to act, did the Appellate Court properly
reverse the trial court's vacating an arbitrator's award?” White v. Kampner, 226 Conn. 909, 625 A.2d 1379
(1993). The principal issue, as we frame it herein, differs from the certified issue in that the certified issue
assumes that it is undisputed that the defendants never waived their challenge to the arbitrator's authority
to act. The Appellate Court had no occasion to reach the issue of waiver because its interpretation of the
contractual language was dispositive of the appeal. White v. Kampner, supra, 31 Conn.App. at 77, 623
A.2d 514. Nevertheless, although the factual determinations of the trial court with respect to waiver are
undisputed, both parties briefed the legal aspect of the waiver issue. See footnote 11. When the dictates of
justice so demand, we may expand or modify a certified issue. Practice Book § 4187; Paranteau v. DeVita,
208 Conn. 515, 516 and n. 1, 544 A.2d 634 (1988). Accordingly, we restate the issue to include the plaintiff's
claim of waiver by the defendants.
2 Although the parties entered into two separate contracts, a management contract and a purchase contract,
the provisions pertaining to arbitration in each contract are identical. Therefore, this opinion will refer to the
contracts jointly as “the contract.”
3 For example, the attorney for the defendants wrote to Jeffrey T. Zaino, tribunal administrator of the arbitration
association, the following: “We have been unable to schedule a mandatory negotiation session in accordance
with the underlying contract to date. I have written to [the attorney for the plaintiff] to schedule same without
response.
“Since this session forms the underlying jurisdictional basis for arbitration, please be
advised that the hearing should be canceled until the complainant is in compliance with
the agreement.”
4 The trial court found the following: “The proceedings before the arbitrator were unrecorded, and the witnesses
in this court differed on whether the question of arbitrability had been submitted to the arbitrator. The court
finds that it was. [The plaintiff's arbitration attorney] credibly testified that he and [the defendants' arbitration
attorney] agreed at the conclusion of the arbitration hearing to submit their correspondence to the arbitrator
so that the arbitrator could decide the issue of arbitrability. [The plaintiff's arbitration attorney] also testified,
however, that this was done in the context of an objection to the entire proceeding by [the defendants'
arbitration attorney] before the arbitration evidence began. [The defendants'] objection was based on the
specific ground that no negotiation sessions had occurred. The court finds that this objection was seasonably
made to the arbitrator and that no waiver occurred.”
5 The arbitrator made the following award to the plaintiff: “[The defendants] breached the Management Contract
with Claimant. Award in favor of Claimant of: 1. $49,883.44 with 10 [percent] per annum accruing from August
27, 1990 until date of payment; and 2. $205,200.00 with 10 [percent] per annum accruing from January 28,
1991 until date of payment.” The arbitrator also extended the time limit within which the plaintiff could exercise
his option to purchase the corporation.
6 General Statutes § 52–417 provides in pertinent part: “At any time within one year after an award has been
rendered and the parties to the arbitration notified thereof, any party to the arbitration may make application to
© 2022 Thomson Reuters. No claim to original U.S. Government Works. 6
Rivas, Gino 2/18/2022
For Educational Use Only
End of Document © 2022 Thomson Reuters. No claim to original U.S. Government Works.