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Because a motion to confirm or to vacate an arbitration award must be accompanied by a written record, and because such actions are initiated by motion or petition and not by complaint, uncontested motions to confirm or to vacate should be decided under the summary judgment standard rather than by default, according to a Texas federal court.
In Smartprice.com, Inc. v. Long Distance Services, Inc., 2007 WL 1341412 (W.D. Tex. May 4, 2007), Smartprice filed an Application for Confirmation and sought an award of costs after it won an arbitration award against Long Distance Services (LDS). LDS was served with a summons and received a copy of the Application for Confirmation. LDS failed to respond and Smartprice moved for default judgment.
The Court held that default judgments are generally inappropriate in confirmation/vacatur proceedings. "A motion to confirm or vacate an award is generally accompanied by a record, such as an agreement to arbitrate and the arbitration award decision itself, that may resolve many of the merits or at least command judicial deference."
The Court also determined that Federal Rule of Civil Procedure 55, which governs default judgments, only operates in the context of actions initiated by complaint and not actions initiated by motion or petition. Accordingly, the Court confirmed the award, determining that Smartprice met its burden of production by providing a copy of the original contract and arbitrator's ruling.
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