McConnell & Malek Enterprises v. Proof Mark, Inc

Background

The case had been stayed while the parties arbitrated their dispute. The arbitrator issued a final award on October 8, 2024. Plaintiff later told the court that it had known about the award but had chosen to wait for Defendant to take action. Plaintiff eventually stated that it would seek confirmation of the award as a court judgment and then appeal that judgment.

The court ordered any party seeking to confirm or vacate the award to file the appropriate motion by April 18, 2025. Plaintiff filed its motion to vacate on that date. The court later directed both parties to address whether the three-month deadline in 9 U.S.C. § 12 barred Plaintiff’s requested relief. Defendant’s opposition did not address that issue, and Plaintiff did not file a reply.

Legal issue

Section 12 of the Federal Arbitration Act requires notice of a motion to vacate, modify, or correct an arbitration award to be served on the opposing party or the opposing party’s attorney within three months after the award is filed or delivered. The court cited Ninth Circuit decisions strictly enforcing that deadline and explaining that it promotes finality in arbitration awards. The court also discussed an unpublished Ninth Circuit decision suggesting that a court may apply the deadline even when a party does not raise it.

Order

The court ordered Plaintiff to show cause—meaning to explain—why its motion to vacate should not be denied as untimely. Plaintiff must respond by August 6, 2025. Defendant may respond by that date if it wishes, but need not do so. The order did not finally grant or deny the motion to vacate and did not decide the underlying grounds for challenging the arbitration award.