The court confirmed an arbitration award entered in favor of Astanza Design, LLC against Giemme Stile, S.p.A. and Giemme USA, LLC (Giemme) in which the arbitrator awarded both damages and attorneys’ fees to Astanza in a dispute arising from the parties’ agreement that Astanza was to serve as the exclusive representative for Giemme’s furniture sales to the LDS Church. Among other things, Giemme contended that the arbitrator lacked authority to award attorneys’ fees. The court disagreed.
The parties’ contract contemplated that the AAA International Center for Dispute Resolution Rules of Procedure would apply, and Article 34 of those rules provides that the tribunal “shall fix the costs of arbitration in its award.” In confirming the award, the court noted that the parties’ “bargained for the arbitrator’s construction of their agreement”, and noted that an arbitration award “even arguably construing or applying the contract must stand, regardless of this court’s view of its merits.” The award “drew its essence from the contract and was far from a manifest disregard of the law.” Astanza Design, LLC v. Giemme Stile, S.p.A., Case No. 1:16CV1238 (USDC M.D.N.C. Dec. 15, 2016).
This post written by Brooke L. French.
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