FIRST CIRCUIT REVERSES AND REMANDS DISTRICT COURT’S DENIAL OF ARBITRATION ATTORNEYS’ FEES AWARD
The First Circuit Court of Appeals recently considered whether a Massachusetts statute entitling a party to attorneys’ fees following a successful arbitration entitles the same party to attorneys’ fees incurred in successfully defending against an attempt to overturn the arbitral award in court. The arbitration panel had originally awarded attorneys’ fees under Mass. Gen. Laws. ch. 93A § 9(4) & 11. The Court of Appeals first determined, after reviewing Massachusetts state cases, that the district court was not prohibited from awarding attorneys’ fees under the statute. However, based on state cases and statutory language, the Court of Appeals concluded that an award of attorneys’ fees was not mandatory under the statute. Because the district court failed to explain the basis for its denial of the attorneys’ fees award, the Court of Appeals held that there was an abuse of discretion and reversed and remanded for further proceedings consistent with the opinion. Scott v. Tobin, No. 08-1863 (1st Cir. Jul. 8, 2009).
This post written by John Black.
