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A district court order requiring one party to "pay all the costs of the arbitration" does not require arbitrators to order that party to pay the other party's attorney fees, the Sixth Circuit Court of Appeals held.
In Essenmacher v. Orkin Exterminating Co., No. 06-1578, 2007 WL 437935 (6th Cir. Feb. 6, 2007), an arbitration panel issued an award in Essenmacher's favor. Despite prevailing, Essenmacher asked the court to vacate the award, arguing that the arbitrators manifestly disregarded the law by not awarding her attorney fees.
On appeal, Essenmacher argued that she was entitled to attorney fees because the district court ordered Orkin to "pay all the costs of arbitration" when it issued the order compelling arbitration. The Court disagreed and upheld the arbitration award, noting than an order to "pay all the costs of arbitration" referred to filing fees and arbitrators' fees, not the costs of Essenmacher's attorney. Accordingly, the arbitrators did not manifestly disregard the law by declining to award attorney fees.
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