The Third Circuit Court of Appeals affirmed the confirmation of an arbitration award, rejecting the contention that the arbitrator had failed to fully consider one party's submissions during the proceedings.

In Transtech Industries, Inc. v. A&Z Septic Clean, No. 05-5246, 2008 WL 762100 (3d Cir. Mar. 24, 2008), Transtech and SCA Services (SCA) operated a joint partnership to transport waste to a certain landfill. After the landfill was closed by the government, Transtech sued and received damages for loss of the use of the landfill.

SCA filed suit, as Transtech's former partner, to receive a share of these damages. After this dispute arose, the parties agreed to arbitration of SCA's claims. The arbitrator made an initial award in favor of SCA of $3,500,000.

Based on the recalculation of certain tax liabilities, Transtech did not comply with the initial award, claiming it did not owe SCA based on its recalculated liabilities. After considering Transtech's recalculations, the arbitrator issued an amended award also in favor of SCA, again in the amount of $3,500,000. Transtech then moved to vacate the award, but the district court instead confirmed the award.

Transtech first argued that the award suffered from various procedural flaws, alleging that the arbitrator violated its due process rights during the proceedings. The Court flatly rejected this claim, observing that Transtech had ample opportunity to make submissions regarding its position, and that there was no evidence that the arbitrator had failed to consider Transtech's submissions.

The Court also rejected Transtech's claims that the arbitrator committed misconduct by engaging in ex parte communications with counsel, failing to issue a reasoned opinion, considering parol evidence during proceedings, and issuing an amended award intended to clarify the initial award. Finally, the Court found that the arbitrator's interpretation of the contract was rationally supported by the evidence.