Airborne Athletics, Inc. v. Shoot-A-Way, Inc.

Summary

The United States District Court for the District of Minnesota grants Airborne Athletics, Inc.’s petition to confirm an arbitration award and denies Shoot-A-Way, Inc.’s motion to vacate. The court holds that the arbitrator did not exceed her powers in awarding attorneys’ fees for the prior arbitration and the current arbitration, or in awarding prejudgment interest. The order applies the Federal Arbitration Act, the parties’ settlement agreement, AAA Commercial Rules, and Minnesota law.

Holdings

1. The arbitrator did not exceed her powers by finding that Airborne's final offer, including a covenant not to sue, contained all material terms and was legally valid. Even if that interpretation were erroneous, an arbitrator does not exceed her powers by making an error of law or fact while arguably construing the agreement.
2. The arbitrator did not exceed her powers by awarding Airborne attorneys' fees for the second arbitration because both parties requested attorneys' fees and AAA Commercial Rule 49(d)(ii), incorporated into the parties' arbitration agreement, authorized the arbitrator to award them.
3. The arbitrator did not manifestly disregard the law by awarding prejudgment interest on Airborne's attorneys' fees from the first arbitration.
4. The court confirmed the arbitration award in full, denied Shoot-a-Way's motion to vacate, awarded the specified fees, prejudgment interest, and arbitration costs, and granted postjudgment interest under 28 U.S.C. § 1961.

Questions Presented

1. Whether the arbitrator exceeded her powers by determining that Airborne's final mediation offer was a valid and legal offer containing all material terms.
2. Whether the arbitrator exceeded her powers by awarding Airborne attorneys' fees incurred in the second arbitration.
3. Whether the arbitrator manifestly disregarded the law by awarding prejudgment interest on attorneys' fees from the first arbitration.
4. Whether Airborne was entitled to confirmation of the arbitration award, including arbitration costs and postjudgment interest.

Disposition

approved