Confirming an arbitration award, the United States District Court for the Southern District of New York awarded attorney fees to the party seeking confirmation because the opposing party "refuse[d] to abide by an arbitrator's decision without justification."

In Celsus Shipholding Corp. v. Manunggal, No. 06 Civ. 13598(DLC), 2008 WL 474148 (S.D.N.Y. Feb. 21, 2008), Manunggal chartered Celsus's ship, but failed to pay the amount due under the contract. The parties arbitrated the matter under English law in London pursuant to the contract's arbitration agreement.

The arbitrator awarded Celsus $154,572.08 in damages, £ 4,750 in arbitration costs, and £ 4,250 in arbitrator fees. Manunggal did not appeal the award and the time for appeal under English law expired. Celsus moved to confirm the award pursuant to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and sought attorney fees and costs for confirming the award. Mannunggal did not oppose the motion.

The Court confirmed the award, finding that Celsus supported its petition by demonstrating that no issue of material fact existed. The Court also awarded attorney fees. Although Celsus did not cite any contractual or statutory right to attorney fees, a court may nonetheless award attorney fees pursuant to its equitable powers when opposing counsel acts in bad faith, vexatiously, wantonly or for oppressive reasons. Applying this standard to the confirmation proceeding, the Court concluded by noting that Manunggal's refusal to abide by the arbitrator's decision without justification merited imposing attorney fees.