INTE Securities, LLC v. Skybell Technologies, Inc.

Background

INTE Securities, LLC sought confirmation of an arbitration award against Skybell Technologies, Inc. The dispute arose from a December 21, 2018 Investment Advisory and Investment Banking Agreement. The agreement referred to the counterparty as “Skybell, Inc.” INTE Securities asserted, and the arbitrator found, that the agreement meant Skybell Technologies, Inc.

The agreement required payment of $250,000 to Nathan Low, or a company he designated, no later than 18 months after the agreement date. It also required disputes to be submitted to binding arbitration in New York City under American Arbitration Association rules.

INTE Securities notified Skybell of its intent to arbitrate and filed a demand for arbitration. Skybell did not attend the scheduled preliminary hearings or submit responses to INTE Securities’ dispositive motion. On April 5, 2023, the arbitrator found that Skybell breached the payment obligation and ordered it to pay $250,000, $62,753.42 in pre-award interest, and $9,582.50 for arbitration fees and arbitrator compensation.

Federal Court Proceedings

INTE Securities petitioned the Southern District of New York to confirm the award under Section 9 of the Federal Arbitration Act. The court treated the unopposed request as a motion for summary judgment, which asks whether the evidence shows there is no genuine dispute of material fact and the moving party is entitled to judgment under the law.

The court determined that it had jurisdiction based on diversity of citizenship and the amount in dispute. It also found that Skybell had consented to personal jurisdiction in New York through the agreement’s arbitration provision.

Court’s Analysis

The court explained that review of an arbitration award is narrow. A court generally must confirm an award if the arbitrator’s reasoning can be inferred from the record and has at least a minimally reasonable legal basis. The court found that INTE Securities’ evidence supported the award, including the agreement, Skybell’s corporate records and website information, the demand letter, and the arbitrator’s Final Award.

The court concluded that the evidence supported the arbitrator’s finding that Skybell Technologies, Inc. was the entity identified as “Skybell, Inc.” in the agreement and that Skybell breached the payment obligation. The court also found no statutory basis to vacate the award, such as fraud, arbitrator bias, misconduct, or action beyond the arbitrator’s authority.

Disposition

The court GRANTED INTE Securities’ motion for summary judgment and confirmed the arbitration award. It directed entry of judgment for $322,335.92, consisting of $250,000 in principal, $62,753.42 in pre-award interest, and $9,582.50 in arbitration fees and compensation. It also awarded nine-percent prejudgment interest from the award date through the date of judgment and statutory post-judgment interest.

The court DENIED without prejudice INTE Securities’ application for attorneys’ fees and costs incurred after April 5, 2023, because INTE Securities had not requested a specific amount or submitted time records and other supporting documentation. The court directed the Clerk to close the case.