NO MANIFEST DISREGARD IN ATTORNEYS’ FEES AWARD
General Security and AequiCap were parties to a contingent commission agreement, by which AequiCap reinsured certain of General Security’s losses under a specified formula. The parties disputed whether AequiCap owed General Security approximately $400,000 under the agreement. General Security demanded arbitration. A three-arbitrator panel ruled in its favor, and also granted it an additional $200,000 for costs and attorneys fees. AequiCap petitioned for vacatur to the district court, arguing that the award of attorneys fees was in “manifest disregard” of the law. The district court found for General Security, noting that the arbitration agreement allowed the panel to order such remedies as it deems appropriate. The court therefore denied the petition to vacate, and granted General Security’s cross-motion to confirm the award. In re General Security National Insurance Co., Case No. 10-CV-8682 (USDC S.D.N.Y. Apr. 29, 2011).
This post written by John Pitblado.
