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An arbitration panel does not exceed its authority by determining which party was the prevailing party in a dispute where the issue of attorney’s fees was not submitted to arbitration, a state court in Florida held.
In R.M. Stark & Co. v. Noddle, No. 4D05-4107, 2006 WL 2683210 (Fla. App. Sept. 20, 2006), Noddle sued Stark for breach of fiduciary duty, and the parties arbitrated the dispute. Although Noddle’s claims were denied, the arbitration panel awarded costs in favor of Noodle and included an award clarification letter stating that Stark was not the prevailing party.
Stark argued that the arbitration panel exceeded its authority in denying his request for attorney’s fees because the parties’ agreement did not give the panel the power to determine attorney’s fees.
The Court disagreed, noting that although the arbitration panel did not have authority to award attorney’s fees, the panel was acting within its authority when it determined that Stark was not the prevailing party.
Additionally, the arbitration panel’s assessment of costs and fees against Stark gave the Court grounds to uphold the panel’s determination that Stark was not the prevailing party.
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