Media Force Ltd. v. Precise Leads, Inc.

Background

Media Force Ltd. petitioned under Section 9 of the Federal Arbitration Act to confirm an arbitration award against Precise Leads, Inc. The parties had an agreement concerning Media Force’s marketing efforts that required binding arbitration before the American Arbitration Association for disputes regarding the agreement.

Media Force initiated arbitration on July 9, 2019, alleging breach of contract and unjust enrichment based on Precise Leads’ failure to pay for services. Precise Leads did not appear in the arbitration. Arbitrator William H. Cosby found that Precise Leads violated the agreement by failing to make the required payments. The award ordered Precise Leads to pay $332,418.42 in outstanding invoices, $13,904.46 in attorneys’ fees and costs incurred in the arbitration, and $6,172.50 in arbitration-related administrative fees and expenses. It also awarded nine percent interest on the outstanding invoices, beginning 31 days after the award until payment.

Precise Leads also did not appear in the federal case. Media Force requested confirmation of the award, prejudgment and post-judgment interest, and reasonable attorneys’ fees and costs incurred in the federal action.

Legal standard

The Federal Arbitration Act requires a court to confirm an arbitration award unless a statutory basis exists to vacate, modify, or correct it. Courts give arbitration awards substantial deference and generally enforce an award if there is at least a barely colorable justification for the result.

Because Precise Leads did not answer the petition, the Court treated the petition as an unopposed motion for summary judgment. Summary judgment is appropriate when there is no genuine dispute over a material fact and the moving party is entitled to judgment as a matter of law. Even without an opposing party, the Court still had to review Media Force’s submissions and determine whether Media Force met its burden.

Rulings

The Court found that the dispute was subject to arbitration, that Media Force had shown at least a barely colorable justification for the award, and that no genuine dispute of material fact prevented confirmation. The Court therefore confirmed the arbitration award.

The Court granted prejudgment interest at nine percent from May 6, 2020—the date of the arbitration award—to the date of judgment. It also granted post-judgment interest at the statutory rate applicable to civil money judgments.

The Court denied Media Force’s request for attorneys’ fees and costs incurred in pursuing the federal action. Media Force had not stated the amount sought or provided the documentation needed to show that the requested fees were reasonable.

Disposition

The petition to confirm the award was granted. The request for attorneys’ fees and costs for the federal action was denied. The Clerk was directed to enter judgment against Precise Leads for $332,418.42 in unpaid invoices, $13,904.46 in arbitration attorneys’ fees and costs, $6,172.50 in arbitration administrative fees and expenses, nine-percent prejudgment interest from May 6, 2020, to the date of judgment, and post-judgment interest at the statutory rate. The case was closed.