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A New Jersey state appellate court denied a request for fees associated with obtaining confirmation of an arbitration award because the parties’ agreement did not expressly provide for the award of attorney’s fees.
In Rock Work, Inc. v. Pulaski Const. Co., Inc., 2007 WL 3101402 (N.J. Super. A.D. Oct. 25, 2007), Norwood was a subcontractor on a project managed by contractor Pulaski. After Pulaski was sued, Pulaski impleaded Norwood. Pursuant to an arbitration agreement amongst the parties, the dispute proceeded to arbitration.
An award was issued in favor of Pulaski. Pulaski sought to confirm the award and requested a grant of attorney’s fees for the confirmation proceedings. A Law Division judge confirmed the award, but did not grant Pulaski the attorney’s fees. Pulaski appealed.
Pulaski argued that it was entitled to fees associating with confirmation of the award, without citing any authority except for the Arbitration Act, which provides for the reasonable award of fees. See N.J.S.A. 2A:23B-25(c). However, the Court had already determined that a previous version of the Arbitration Act, which doesn’t allow for these fees, applied.
Regardless, the Court noted that even if they were to apply the current Arbitration Act’s provisions on attorney’s fees, they wouldn’t grant Pulaski’s request. The Arbitration Act adopts the American Rule unless the parties agree to shift fees.
The Court rejected Pulaski’s argument that the parties’ agreement to shift fees was implied by the agreement to arbitrate any matter arising out of the contract.
In its determination, the Court looked to legislative intent surrounding the statute. It found that the APDRA allows for fee-shifting where parties expressly agree, while the Arbitration Act does not use the term “expressly.” See N.J.S.A. 2A:23A-17; N.J.S.A. 2A:23B-25(c).
The Court found “no reason for inferring that the Legislature intended implied contracts to be sufficient in one setting and not in the other.”
There was no express agreement for fee-shifting here. Thus, Pulaski was not entitled to attorney’s fees. Accordingly, the award was confirmed in its entirety.
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