Biggs v. Heriot

The trial court erred in granting the plaintiffs' application for final judgment on an arbitration award without giving defendants an opportunity to object and to present evidence in support of their position that they complied with the terms of the award.

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Kathryn and Ben Biggs, d/b/a K. B. Construction, Inc., appeal the trial court’s order granting the application for final judgment filed by Kirk and Janet Heriot. The Heriots purchased a home built by the Biggses and later filed a demand for arbitration seeking damages for alleged construction defects. The arbitrator found in favor of the Heriots, and the award allowed the Biggses to pay the damages in monthly installments. The court confirmed the award by entering a consent order submitted by the parties which incorporated the arbitrator’s award. In their application for final judgment, the Heriots asserted the Biggses were in default of the award as confirmed in the consent order and sought a judgment on the remaining balance plus interest. The Biggses contend the trial court erred in granting the Heriots’ ex parte application for final judgment 1 without affording the Biggses notice and an opportunity to be heard; 2 based on an erroneous finding that the Biggses were in default; and 3 in an amount which allowed the collection of interest on the costs of the arbitration, in addition to interest on the principal amount of damages. Because the trial court erred in granting ex parte the Heriots’ application for final judgment, we reverse.

The Heriots contend the Biggses were not entitled to notice of their application for final judgment and a hearing because the arbitrator’s award provided that upon default and failure to cure default within the time allowed, “then the entire principal amount remaining shall be immediately due.” The Heriots further rely on language in the consent order confirming the arbitration award, as follows:

Biggs v. Heriot

The trial court erred in granting the plaintiffs' application for final judgment on an arbitration award without giving defendants an opportunity to object and to present evidence in support of their position that they complied with the terms of the award.

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