In our January 15, 2015, post, linked here,
we noted the decision in Lasco Inc. v.
Inman Construction Corp., et al.,
2015 WL 129024 (Tenn. App. 2015), in which the Tennessee Court of Appeals
reversed the trial court and upheld an arbitrator’s attorneys’ fee award. The
court found that, while the contract at issue did not explicitly provide for
the award of attorneys’ fees, the parties
incorporated the AAA’s Construction Industry Rules into their agreement -
particularly Rule 45, which authorizes arbitrators to include an attorneys’
fees in an award when both parties request attorneys’ fees. Because both
parties had requested attorneys’ fees, the court held that the arbitrator had
not exceeded his authority in awarding attorneys’ fees to the prevailing party.
Recently, in City of
Chesterfield v. Frederich Constr., Inc., 2015 WL 1814471 (Mo. Ct. App.
2015), the Missouri Court of Appeals held similarly. The contracts at issue
provided that all disputes were to be resolved under the AAA’s Construction
Industry Rules, but the contracts did not contain explicit attorneys’ fee
provisions. There was also no statutory authority for an attorneys’ fee award. The
arbitrators noted those points in their final award, but the panel nevertheless
awarded fees against the City of Chesterfield under Rule 45 of the AAA’s
Construction Industry Rules. Despite the City’s urging that its prior requests
for attorneys’ fees were merely “boilerplate” requests, the Court of Appeals
found that both parties had indeed requested attorneys’ fees. Therefore, the
court held that the panel’s award of fees was proper.
For your reference, a copy of the unpublished decision is
linked here.
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