On March 31, 2016, we wrote regarding an arbitration confirmation fight between the Scottsdale Insurance Company (“Scottsdale”) and the John Deere Insurance Company (“John Deere”) in a reinsurance dispute relating to whether there was a computation error in the award’s calculation. Both sides sought confirmation of the arbitral award, but Scottsdale sought to increase the award, alleging a miscalculation. John Deere prevailed in the confirmation fight, and John Deere filed an application for attorneys’ fees and costs. On July 22, 2016, the District Court of Arizona largely granted that application over Scottsdale’s objections.
The reinsurance agreements between the parties provided that if a court confirmed an arbitration award, “the attorneys’ fees of the party so applying and court costs will be paid by the party against whom confirmation is sought.” John Deere sought all of its fees from the confirmation proceeding, including responding to Scottsdale’s motion to modify or correct the arbitration award. Scottsdale opposed the fee request, arguing that John Deere was limited to seeking reimbursement for attorneys’ fees incurred “solely in connection with its cross-motion to confirm the arbitration award.” The Arizona federal court disagreed, finding that the parties’ agreement was not so limited, although the Court reduced a portion of the award sought due to redaction of time entries and failure to comply with a local rule.
Scottsdale Ins. Co. v. John Deere Ins. Co., Case No. CV-15-00671-PHX-PGR (USDC D. Az. July 22, 2016).
This post written by Zach Ludens.
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