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Supreme Court No. 2011-280-Appeal. (PC 05-3715)

Drago Custom Interiors, LLC v. Carlisle Building Systems, Inc., et al.

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NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone 222-3258 of any typographical or other formal errors in order that corrections may be made before the opinion is published.

Supreme Court No. 2011-280-Appeal. (PC 05-3715)

Drago Custom Interiors, LLC v. Carlisle Building Systems, Inc., et al.

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Present: Suttell, C.J., Goldberg, Flaherty, Robinson, and Indeglia, JJ. OPINION Justice Goldberg, for the Court. This case came before the Supreme Court on

October 25, 2012, pursuant to an order directing the parties to appear and show cause why the issues raised in this appeal should not summarily be decided. The defendant, International Fidelity Insurance Company (IFIC or defendant), appeals from a Superior Court judgment in favor of the plaintiff, Drago Custom Interiors, LLC (Drago or plaintiff). The defendant contends that the Superior Court was without authority either to remand the case back to the arbitrator for clarification of the record or to modify the arbitration award. After considering the memoranda submitted by the parties and the arguments of counsel, we are satisfied that cause has not been shown and that the appeal may be decided at this time. We affirm the judgment. In April 2003, Carlisle Building Systems, Inc. (Carlisle), the general contractor for a construction project (project) at the Charlestown Fire Station at Routes 2 and 112, contracted with Drago to perform carpentry work for the project. In accordance with the contract between Carlisle and the Charlestown Fire District (fire district), a Labor and Material Payment Bond (bond) was issued for the project; Carlisle was principal on the bond, and IFIC was the surety. Drago alleges that the bond guaranteed payment, from either Carlisle or IFIC, to any entity -1-

supplying labor or material to the project and that Drago performed work on the project for which it had not been paid. Accordingly, on July 20, 2005, Drago filed suit against Carlisle and IFIC, seeking to recover payment for the work that it had performed. In its answer, IFIC admitted that it was the surety on the bond. However, because the project fell under the purview of the Public Works Arbitration Act (PWAA or act), G.L. 1956 chapter 16 of title 37, and the contract between Carlisle and the fire district contained an arbitration provision, IFIC and Carlisle moved to stay the Superior Court proceedings pending arbitration of Dragos claims. See

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