Absolute Nevada, LLC v. Grand Majestic Riverboat Company LLC

Background

Absolute Nevada and Grand Majestic entered into a charter agreement for the riverboat M/V Americana in September 2019. After Grand Majestic allegedly failed to accept delivery and Joseph Baer allegedly interfered with efforts to re-charter the vessel, Absolute Nevada demanded arbitration and filed a court action seeking emergency relief.

The parties later entered into a January 6, 2020, stipulation and order. That agreement limited the remaining claims arising from the failed charter to damages, required arbitration, restricted Grand Majestic from seeking arrest of the vessel, required removal of certain public statements, and preserved the court’s jurisdiction. The arbitration then continued primarily on Absolute Nevada’s request for attorneys’ fees and costs.

On March 25, 2020, the arbitration panel issued a Partial Final Award. It awarded Absolute Nevada $63,816.31 in attorneys’ fees and costs for the arbitration and court action. It also ordered that $17,200 in arbitrators’ fees, initially paid from security funds deposited by Absolute Nevada, could be recovered from Grand Majestic. The award provided for five-percent annual interest on unpaid amounts until the award was confirmed as a court judgment.

Court’s Analysis

Absolute Nevada petitioned to confirm the award on March 25, 2021. Grand Majestic had counsel who had appeared in the action, so the court treated service as complete when the petition was filed electronically. Grand Majestic did not answer or otherwise respond.

The court explained that confirmation proceedings are generally not decided by simply entering a default judgment. Instead, the court reviews the petition and supporting materials under a standard similar to summary judgment. Confirmation is generally required unless the arbitration award is vacated, modified, or corrected, and only a minimally plausible legal or factual basis is needed to confirm the arbitrators’ result.

The court found that the charter agreement contained a broad arbitration clause and authorized recovery of reasonable attorneys’ fees in an action to enforce the agreement or declare rights. The agreement also incorporated arbitration rules authorizing the panel to award reasonable fees, expenses, and costs. The court concluded that the Partial Final Award was supported by law and fact and that there was no genuine factual dispute requiring a different result.

Disposition

The court GRANTED Absolute Nevada’s petition to confirm the March 25, 2020, Partial Final Award. The court did not separately state that it entered the final judgment at that time. Instead, it directed Absolute Nevada, within fourteen days, to submit a declaration concerning attorneys’ fees and costs incurred in filing the petition and a proposed final judgment. The Clerk was directed to terminate the motion.