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Trial courts “shall confirm” arbitration awards unless there are statutory grounds for vacatur or modification, and cannot set aside an award merely because the “situation did not seem fair,” according to the Louisiana Court of Appeal.
In CACV of Colorado, LLC v. Coston, No. 2006 CA 1460, 2007 WL 2713391, (La. Ct. App. Sept. 19, 2007), Coston acquired a bank loan to buy a computer and later defaulted on the loan. CACV purchased the debt and sought to collect from Coston through arbitration. Coston did not respond to the various notices and requests regarding the arbitration, and the arbitrator rendered an award for CACV.
CACV later moved for confirmation of the award. The trial court acknowledged that CACV had followed the proper procedure for confirming the award, but denied confirmation, stating that the “situation did not seem fair.” CACV appealed the denial, maintaining that the trial court was bound to confirm the award under the circumstances.
On appeal, the Court agreed that the trial court erred in not granting the motion to confirm, noting that the statute stated the trial court “shall confirm” an award unless there are grounds for vacatur or modification. The Court found that there were no statutory grounds for vacating or modifying the award, and therefore, the trial court was required to confirm the award. The Court stated that “[t]he trial court simply lacked the discretion to decline to grant the order in this case.”
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