Iowa Court Confirms Arbitration Award Despite Lack of Participation by Losing Party

The Iowa Court of Appeals held that there was no statutory basis for denying confirmation of an arbitration award even though the losing party did not participate in any of the proceedings.

In CACV of Colorado, L.L.C. v. Croy, No. 05-1699, 2006 WL 1628444 (Iowa Ct. App. June 14, 2006), the arbitrator awarded CACV $23,391.82. Cory did not participate in the arbitration.

The trial court denied CACV’s motion to confirm the award on four grounds. First, CACV did not submit a copy of the arbitration agreement. Second, CACV failed to comply with Iowa Code § 679A.8(1), which requires an arbitration award to be delivered by registered mail. Third, there was no evidence indicating that Croy was served with notice of the arbitration hearing as required by Iowa Code § 679A.5(1). Lastly, the court could not determine whether the award was made within thirty days of the arbitration hearing as required by Iowa Code § 679A.5(3).

As an initial matter, CACV argued that the trial court erred by inquiring into the merits of the dispute sua sponte. Citing $99 Down Payment, Inc. v. Garard, 592 N.W.2d 691 (Iowa 1999), the Court held that the trial court did not err on this issue.

Then, quoting Iowa Code §§ 679A.12-13, the Court recited the statutory grounds for denying confirmation of an arbitration award. Of the four grounds cited by the trial court, the Court found that “[t]he only ground conceivably included in either section 679A.12 or section 679A.13 is CACV’s failure to file ‘in conjunction with its motion’ a copy of the arbitration agreement.”