Niram Inc. v. Salvi Steel Fabricators LLC - Arbitration Award Confirmation
Summary
The New Jersey Superior Court Appellate Division affirmed a lower court's order confirming an arbitration award in favor of Niram, Inc. against Salvi Steel Fabricators, LLC. The court applied a deferential standard of review to the arbitration award, which concerned a construction subcontract dispute.
What changed
The New Jersey Superior Court Appellate Division issued a non-precedential opinion affirming the confirmation of an arbitration award in favor of Niram, Inc. against Salvi Steel Fabricators, LLC. The dispute arose from a construction subcontract for the Javits Project, with the parties agreeing to a standard arbitration award. Salvi Steel Fabricators appealed the Law Division's order confirming the award and denying its motion to modify or vacate.
The appellate court applied a highly deferential standard of review to the arbitration award, affirming the lower court's decision. The opinion notes that while the decision is binding on the parties, its use in other cases is limited due to its non-precedential status. The case involved a construction subcontract dispute governed by New York law and arbitrated in New Jersey.
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March 19, 2026 Get Citation Alerts Download PDF Add Note
Niram, Inc. v. Salvi Steel Fabricators, LLC
New Jersey Superior Court Appellate Division
- Citations: None known
- Docket Number: A-2600-24
Precedential Status: Non-Precedential
Combined Opinion
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2600-24
NIRAM, INC.,
Plaintiff-Respondent,
v.
SALVI STEEL FABRICATORS,
LLC,
Defendant-Appellant.
Submitted March 4, 2026 – Decided March 19, 2026
Before Judges Mayer and Vanek.
On appeal from the Superior Court of New Jersey, Law
Division, Morris County, Docket No. L-0425-25.
Kelly Law, PC, attorneys for appellant (Charles P.
Kelly, IV, of counsel; Bradley Latino, of counsel and
on the briefs).
Raymond G. Chow, attorney for respondent.
PER CURIAM
Plaintiff Niram, Inc. (Niram) and defendant Salvi Steel Fabricators, LLC
(Salvi) agreed to resolve their construction subcontract dispute through the entry
of a "standard" arbitration award containing only the arbitrator's conclusion,
rather than a "reasoned award" explaining the basis or method for calculating
the award. Salvi appeals from an April 4, 2025 Law Division order confirming
the arbitration award in favor of Niram and denying Salvi's cross-motion to
modify or vacate the award. Under our highly deferential standard of review of
arbitration awards, we affirm.
I.
In June 2021, Niram subcontracted with Salvi for the fabrication and
installation of structural steel on the Javits Lecture Center rehabilitation project
at SUNY Stony Brook (Javits Project) for a total contract price of $577,000 (the
subcontract). Sections 6.3.1 and 6.3.7 of the subcontract required that any
contractual disputes be resolved under New York law through binding
arbitration conducted by the American Arbitration Association (AAA) in New
Jersey.
Sections 3.4.1 and 7.2.1 of the subcontract set forth available damages in
the event of Salvi's breach and Niram's termination of the subcontract. Niram
could terminate the subcontract under section 3.4.1 if Salvi failed to promptly
A-2600-24
2
complete the work or provide sufficient skilled laborers and quality materials.
In that event, after providing Salvi with five days' written notice, Niram could
have the work performed by other subcontractors and recover the costs of
completion from Salvi. Section 3.4.1 further specified:
[I]f the unpaid balance of the amount to be paid under
this subcontract shall exceed the reasonable expense
incurred by [Niram] in finishing the Work, such excess
shall be paid by [Niram] to [Salvi], but if such expense
shall exceed the unpaid balance, [Salvi] shall pay the
difference to [Niram].
Niram could also terminate the subcontract under section 7.2.1 after ten
days' written notice if Salvi failed to complete the work pursuant to the
subcontract and did not cure its breach. In that event, Niram could have the
work performed "by whatever means [it] may deem expedient" under section
7.2.1. Section 7.2.1 provided the same method for calculating damages as
section 3.4.1.
On May 1, 2023, Niram terminated the subcontract and suspended further
payments based on Salvi's failure to supply sufficient properly skilled laborers
and quality materials to complete the Javits Project within the agreed-to
construction schedule. After providing Salvi with the requisite notice and
opportunity to cure its breach, Niram invoked its right under section 7.2.1 to
A-2600-24
3
complete the work and later recover the costs from Salvi. Niram had paid Salvi
$255,594.98 at the time it terminated the subcontract.
On February 2, 2024, Niram filed a demand for arbitration with the AAA,
which included a claim against Salvi under the subcontract. 1 Niram's arbitration
demand asserted its damages caused by Salvi's breach of the subcontract were
$82,507.03. Salvi filed an answer denying it had breached the subcontract and
counterclaiming for "an outstanding $372,405.10 for its work on the Javits
Project."
Rather than a "reasoned award" that would explain the arbitration award's
basis and calculation, the parties agreed to a "standard award," that would
contain only the arbitrator's conclusion. Over the course of a six-day arbitration
proceeding, the parties submitted numerous exhibits, several witnesses testified,
and arguments were presented by counsel. There is no verbatim record of the
proceedings.
After the hearings, the parties submitted their respective damage
summaries. Niram asserted its damages for breach of the subcontract were
$110,838.23, including the cost of completing the work after Salvi's breach and
1
The demand for AAA arbitration also included a claim under a separate
contract with Salvi that is not the subject of this appeal.
A-2600-24
4
credit to Salvi for the unpaid balance of the subcontract. Salvi claimed Niram
owed it a balance of $301,546.44 on the original subcontract plus $151,216.81
in unpaid change orders.
On January 4, 2025, the arbitrator awarded Niram $435,369 for Salvi's
breach of the subcontract. The award stated in pertinent part as follows:
On the Stony Brook Javits Learning Center Project:
[Niram] is awarded $435,369.00 (FOUR HUNDRED
THIRTY-FIVE THOUSAND THREE HUNDRED
SIXTY-NINE DOLLARS) for back charges and costs
to complete.The amount of the lien filed by New York Steel
Erectors on the Stony Brook Javits Learning Center
Project was not properly before the Arbitrator in this
matter.[Salvi] is not entitled to any amount (ZERO
DOLLARS) since the payments by and credits due to
[Niram] exceed the subcontract amount. . .
Neither party is awarded interest or attorney fees.
The administrative fees of the American Arbitration
Association totaling $20,575.00, and the compensation
and expenses of the arbitrator totaling $17,737.46 shall
be borne as incurred.
The above sums are to be paid on or before thirty days
from the date of this Award.
A-2600-24
5
This Award is in full settlement of all claims and
counterclaims submitted to this Arbitration. All claims
not expressly granted herein are hereby, denied.
Salvi then requested the arbitrator modify the award, arguing it conflicted
with the subcontract and the award's "own logic," because the "credits due to
Niram [did] not exceed the subcontract amount." The arbitrator denied Salvi's
request and reaffirmed the award, finding "there [were] no appropriate grounds
to modify [the] award."
Niram then filed a Law Division complaint and motion to confirm the
arbitration award. Salvi filed an answer and cross-moved to vacate or,
alternatively, to modify the award, arguing the arbitrator had acted outside his
authority under the subcontract.
In an oral opinion and accompanying order, the judge granted Niram's
motion to confirm the arbitration award and denied Salvi's cross-motion to
vacate or modify the award, finding the award was within the arbitrator's
authority under the subcontract and the issue of Salvi's entitlement to a credit
for the unpaid subcontract balance had been arbitrated. The judge considered
each statutorily permissible basis for vacating or modifying an arbitration award
and concluded none applied. The judge found the arbitrator's award could not
be modified without disturbing the arbitrator's findings, which were not apparent
A-2600-24
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from the "standard award" itself, and noted "some of the issues. . . are really a
product of the fact that the parties had elected the short form decision. Perhaps
had there been the longer form version . . . it may have clarified . . . how [the
arbitrator] reached those numbers."
On appeal, Salvi argues the judge erred in confirming the arbitration
award without modification and finding the issue of its right to a credit for the
balance of the subcontract had been arbitrated; the arbitrator exceeded the scope
of his power by disregarding the subcontract's terms; the arbitrator erred by
effectively granting Niram punitive damages; and that the arbitration award
could be modified without affecting its merits.
II.
A.
"In New Jersey, arbitration . . . is a favored means of dispute resolution."
Minkowitz v. Israeli, 433 N.J. Super. 111, 131 (App. Div. 2013) (quoting
Hojnowski v. Vans Skate Park, 187 N.J. 323, 342 (2006)). "It is well-settled
that New Jersey's strong public policy favors settlement of disputes through
arbitration." Ibid. "Arbitration can attain its goal of providing final, speedy and
inexpensive settlement of disputes only if judicial interference with the process
is minimized; it is, after all, meant to be a substitute for and not a springboard
A-2600-24
7
for litigation." Fawzy v. Fawzy, 199 N.J. 456, 468 (2009) (quoting Barcon
Assocs., Inc. v. Tri-County Asphalt Corp., 86 N.J. 179, 187 (1981)).
Appellate review of a trial court's confirmation of an arbitration award is
narrow. See Fawzy 199 N.J. at 470. "Basically, arbitration awards may be
vacated only for fraud, corruption, or similar wrongdoing on the part of the
arbitrators. [They] can be corrected or modified only for very specifically
defined mistakes . . . ." Tretina Printing, Inc. v. Fitzpatrick & Assocs., Inc., 135
N.J. 349, 358 (1994) (alteration in original) (quoting Perini Corp. v. Greate Bay
Hotel & Casino, Inc., 129 N.J. 479, 548 (1992) (Wilentz, C.J., concurring)).
To ensure arbitration provides finality, "strict constraints on appellate
review," Rappaport v. Pasternak, 260 N.J. 230, 248 (2025), limit the grounds for
vacating awards to those expressly provided for by the New Jersey Arbitration
Act (Act), N.J.S.A. 2A:23B-1 to -36, particularly N.J.S.A. 2A:23B-28. See
Bound Brook Bd. of Educ. v. Ciripompa, 228 N.J. 4, 11 (2017). "An award may
not be vacated or modified simply because a court disagrees with the arbitrator's
interpretation of the law or view of the facts; unless the statutes' specific
requirements for vacating or modifying an award are met, the award must be
confirmed." Rappaport, 260 N.J. at 250-51 (citing N.J.S.A. 2A:23B-22).
"[B]ecause of the strong judicial presumption in favor of the validity of an
A-2600-24
8
arbitral award, the party seeking to vacate it bears a heavy burden." Del Piano
v. Merrill Lynch, Pierce, Fenner & Smith Inc., 372 N.J. Super. 503, 510 (App.
Div. 2004).
The Act mandates that an arbitration award be vacated under the following
grounds:
[T]he [trial] court shall vacate an award made in the
arbitration proceeding if:
(1) the award was procured by corruption, fraud, or
other undue means;
(2) the court finds evident partiality by an arbitrator;
corruption by an arbitrator; or misconduct by an
arbitrator prejudicing the rights of a party to the
arbitration proceeding;
(3) an arbitrator refused to postpone the hearing upon
showing of sufficient cause for postponement, refused
to consider evidence material to the controversy, or
otherwise conducted the hearing contrary to section 15
of this act, so as to substantially prejudice the rights of
a party to the arbitration proceeding;
(4) an arbitrator exceeded the arbitrator's powers;
(5) there was no agreement to arbitrate . . . or
(6) the arbitration was conducted without proper notice
of the initiation of an arbitration . . . .
[N.J.S.A. 2A:23B-23(a).]
A-2600-24
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The Act similarly constrains a trial court's ability to modify an award,
strictly limiting those circumstances to where:
(1) there was an evident mathematical miscalculation
or an evident mistake in the description of a person,
thing, or property referred to in the award;
(2) the arbitrator made an award on a claim not
submitted to the arbitrator and the award may be
corrected without affecting the merits of the decision
upon the claims submitted; or
(3) the award is imperfect in a matter of form not
affecting the merits of the decision on the claims
submitted.
[N.J.S.A. 2A:23B-24(a).]
The Act also limits appellate rights to the following:
(1) an order denying a summary action to compel
arbitration;
(2) an order granting a summary action to stay
arbitration;
(3) an order confirming or denying confirmation of an
award;
(4) an order modifying or correcting an award;
(5) an order vacating an award without directing a
rehearing; or
(6) a final judgment entered pursuant to this act.
[N.J.S.A. 2A:23B-28.]
A-2600-24
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B.
We first address Niram's threshold argument that Salvi's appeal of the
denial of its cross-motion to vacate or modify the arbitration award is not
statutorily authorized. Because an order denying a motion to vacate or modify
is not among the enumerated bases for appeal in N.J.S.A. 2A:23B-28, Niram
argues the Legislature did not intend to provide for appellate review of the
judge's order denying its cross-motion and, therefore, Salvi's appeal should be
dismissed. However, Salvi's arguments that its cross-motion was improperly
denied are intertwined with those alleging the judge erred in confirming the
arbitration award. Thus, Salvi's appeal is cognizable under N.J.S.A. 2A:23B-
28(a)(3) and prevailing decisional law. See, e.g., Rappaport, 260 N.J. at 243
(deciding appeal of a trial court order denying a modification motion and
confirming the arbitration award).
C.
Given the "extraordinarily deferential standard of review," Rappaport, 260
N.J. at 250, applied to the confirmation of an arbitration award, we affirm the
judge's order because Salvi failed to demonstrate there was a statutory basis for
relief under either the Act or decisional law.
A-2600-24
11
Salvi's argument that the arbitrator exceeded his authority by overlooking
the remedy provisions in the subcontract is unavailing. Salvi maintains that,
because the subcontract's remedy provisions could not conceivably be applied
to yield the awarded amount, the arbitrator must have "created and applied a
unique rule to negate" the contractual provisions.
The record does not support Salvi's contention that the arbitrator
disregarded the remedy provisions in the subcontract. On the contrary, the
arbitrator stated "[Salvi] [was] not entitled to any amount . . . since the payments
by and credits due to [Niram] exceed[ed] the subcontract amount"—evidencing
that he considered the available remedies under the subcontract. There is no
language in the award demonstrating the arbitrator disregarded the subcontract
or erroneously awarded punitive damages. We decline to speculate as to the
arbitrator's rationale where the parties agreed to a "standard award" in which the
arbitrator did not need to explain his reasons.
Salvi asserts that the arbitration award could not have included its claim
for the unpaid contract balance under section 7.2.1 because it only sought "the
actual value of the work performed, as adjusted by change orders" through its
counterclaim. Salvi asserts that at the time it filed the counterclaim, the
subcontract had not been rightfully terminated and, thus, the remedies under
A-2600-24
12
section 7.2.1 were inapplicable. However, Salvi expressly placed its right to the
unpaid contract balance before the arbitrator by seeking damages for "an
outstanding $372,405.10 for its work on the Javits Project." When the arbitrator
determined Salvi was "not entitled to any amount," he decided Salvi's
counterclaim—inclusive of Salvi's demand for the contract balance.
The plain language of the subcontract, coupled with Niram's claims and
Salvi's counterclaim, demonstrated Salvi had reasonable notice that its claim for
the unpaid contract balance was presented to the arbitrator. Block v. Plosia, 390
N.J. Super. 543, 555 (App. Div. 2007) (stating the scope of an arbitration clause,
even when broadly worded, extends only to those claims for which the opposing
party is given reasonable notice). The scope of arbitration mandated by the
subcontract extended to "any claim" thereunder. Niram's claims for the cost of
completing Salvi's work, under both section 7.2.1 and 3.4.1, were rooted in the
subcontract and were therefore within the broadly worded arbitration clause.
Salvi failed to evidence that modification of the award would not "affect
the merits of the controversy," a necessary precondition for relief under N.J.S.A.
2A:23B-24(a)(2). Tretina, 135 N.J. at 250. We cannot conclude the "merits of
the controversy," including the arbitrator's determination of the parties'
respective contractual damages as a result of Salvi's breach and Niram's
A-2600-24
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termination of the subcontract, would not be affected by modification. This is
especially so where, as here, the arbitrator's findings of fact and conclusions of
law on the merits of the parties' positions are unknown because the parties
agreed to entry of a "standard award" that would not express the arbitrator's
reasoning.
Affirmed.
A-2600-24
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