Ace Design & Construction v. MAA Palm Desert Hospitality CA4/1

I. INTRODUCTION

The trial court confirmed an arbitration award in favor of Ace Design & Construction, Inc. (Ace) and against MAA Palm Desert Hospitality, Inc. (MAA). MAA appealed from the ensuing judgment, arguing the arbitrator misinterpreted the parties’ contract and failed to analyze offsetting damages. Finding these claims insufficient to vacate the arbitration award, we affirm.

II. BACKGROUND

MAA owns the Springhill Suites by Marriott in Palm Desert. After a fire damaged the hotel in 2014, MAA hired Ace to reconstruct the property. MAA and Ace executed an American Institute of Architects’ form titled “Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price” (Contract). The terms of the Contract spanned several documents, including an additional American Institute of Architects’ form called “General Conditions of the Contract for Construction” (General Conditions). The guaranteed maximum price under the Contract was $5,159,503, “subject to additions and deductions by Change Order.” Change orders had to be in writing and signed by the parties. Exhibit F to the Contract listed the…