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An arbitration clause allowing the arbitrator to award attorney fees to the prevailing party does not allow a confirming court to award additional fees, a state court in Connecticut held.
In Lawson v. Privateer, Nos. CV064006118S, CV064006130, 2007 WL 611243 (Conn. Super. Ct. Feb. 1, 2007), the Lawsons sold their interests in Privateer, a printing company. The sales agreement contained an arbitration clause that authorized the arbitrator to award attorney fees to the prevailing party.
In accordance with the arbitration agreement, Privateer filed an arbitration claim against the Lawsons for breach of contract. The arbitrator ruled in favor of the Lawsons and awarded them costs and attorney fees. Privateer filed a motion to vacate the award, arguing manifest disregard of the law. The Court found no basis for vacatur and thus confirmed the award.
In opposing the motion for vacatur, the Lawsons sought a court order awarding them additional attorney fees. Privateer opposed that request on the basis that the arbitration agreement allowed only the arbitrator to award attorney fees.
The Court believed that the Lawsons were entitled to recover additional attorney fees. However, the Court agreed with Privateer in concluding that the arbitration agreement allowed only the arbitrator to award attorney fees. Accordingly, the Court denied the Lawsons' request for additional attorney fees.
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