|
A federal court in Kansas has held that, based on the relatively small amount of the claim, ten days notice of an arbitration hearing is sufficient notice to satisfy due process requirements.
In U.S. ex rel. Davis Contracting, L.P. v. B.E.N. Const., Inc., No. 05-1219-MLB, 2007 WL 293915 (D. Kan. Jan. 26, 2007), Davis Contracting brought a breach of contract action against B.E.N. and an action for payment and performance of a surety bond against B.E.N. and its surety, National American Insurance Company (NAICO). NAICO received notice of arbitration ten days prior to it commencement.
The arbitrator issued an award in Davis's favor and against both B.E.N. and NAICO. However, NAICO, who did not appear at the arbitration, argued that enforcement of the award against it would violate its due process rights under the 14th Amendment to the United States Constitution because it did not receive sufficient notice of the arbitration.
In confirming the award against NAICO, the Court pointed out that NAICO could have asked to delay arbitration, but failed to do so and gave no reason for this failure. Additionally, the relatively small amount of the claim reinforced the Court's holding that 10 days notice was sufficient to satisfy due process requirements.
Addressing another potential impediment to confirmation of the award, the Court ruled that B.E.N.'s failure to appear or file a response to the motion to confirm was not a barrier to confirmation because the arbitration agreement itself demonstrated the intent of both parties to submit the final award for Court confirmation.
Subscribe to a free weekly update on ADR case law and
legislation
|