United States District Court, W.D. Kentucky, Louisville Division
MEMORANDUM OPINION AND ORDER
J. Hale, Judge United States District Court
matter is before the Court on Plaintiff National Water
Services, LLC's motion to confirm the arbitration award.
(Docket No. 53) For the reasons set forth below, the motion
will be granted.
Water Services asserted claims against Defendant ACC
Construction Co., Inc. for breach of contract and quantum
meruit. (D.N. 1, PageID # 2-3) Count I of the complaint
concerns the contract between National Water Services and ACC
Construction. (Id., PageID # 2) National Water
Services was retained as a subcontractor to do waterproofing
work for ACC Construction. (Id.) National Water
Services originally submitted a price estimate of $77, 526.25
to complete the required work, but under the contract with
ACC Construction, National Water Services would be paid $65,
000. (Id.) The original contract amount was modified
to reflect that National Water Services would be paid an
additional $18, 000, making the total contract amount $83,
000. (Id.; D.N. 1-4, PageID # 28) National Water
Services completed the waterproofing work pursuant to the
contract and then the contract was terminated. (D.N. 1,
PageID # 3) But National Water Service was paid only $74,
700, and claims ACC Construction has failed to and refused to
pay the remaining balance of $20, 826.25. (Id.)
II of the complaint concerns a separate contract between DC
Concrete Construction, LLC and ACC Construction for the
construction of basements. (Id.) DC Concrete
contracted with National Water Services to perform work
related to the contract between DC Concrete and ACC
Construction. (Id.) DC Concrete's work was
deficient, requiring National Water Services to complete
additional work at the request of ACC Construction.
(Id., PageID # 5) National Water Services requested
ACC Construction enter a contract for the additional work,
but no contract was entered. (Id.) National Water
Service now seeks compensation for the additional work.
(Id., PageID # 6)
Construction asserted a counterclaim against National Water
Services for breach of contract. (D.N. 6, PageID # 105) ACC
Construction claims that its original contract with National
Water Services was modified to include the additional work
related to the DC Concrete contract. (Id.)
parties agreed to submit their dispute to arbitration. (D.N.
51) The arbitrator issued an award in favor of National Water
Services, which was supported by a reasoned opinion
explaining its factual and legal bases. (D.N. 53-2; D.N.
53-3) The award requires ACC Construction to pay National
Water Services $148, 244.64 for its uncompensated services
plus $48, 088.08 in interest from October 11, 2012 to October
31, 2016, the date the arbitration award was issued (D.N.
53-2, PageID # 241) The arbitrator ordered that the award
shall be paid within thirty days. (Id.)
the parties agree to arbitration under the Federal
Arbitration Act, the Court must confirm the award unless the
Court finds reason to vacate, modify, or correct the award. 9
U.S.C. § 9. “The Federal Arbitration Act presumes
that arbitration awards will be confirmed.”
Dawahare v. Spencer, 210 F.3d 666, 669 (6th Cir.
2000). The Court finds no reason to vacate, modify, or
correct the award.
Water Services filed a motion to confirm the arbitration
award. (D.N. 53) National Water Services also seeks
additional prejudgment interest from the date of the award
until the date the Court enters judgment because payment of
the amount awarded was not timely made. (D.N. 53-1, PageID #
238) ACC Construction does not object to confirming the award
as issued by the arbitrator, but objects to National Water
Services's request for additional pre-judgment interest
beyond that awarded by the arbitrator. (D.N. 54, PageID #
Court will confirm the arbitration award and grant National
Water Services's motion. “In general, the Court
calculates interest for two separate time periods when
confirming an arbitration award. The first period is the
‘post-award, pre-judgment' period. This period
begins on the date the award is finalized by the arbitrator
and ends on the date the award is reduced to a judgment by
the Court.” Cargill Inc. v. Howell, No.
5:11-cv-80-R, 2012 WL 647503, at *4 (W.D. Ky. Feb. 28, 2012).
Federal courts sitting in diversity jurisdiction apply state
law to determine the prejudgment interest rate that applies.
Gen. Elec. Co. v. Anson Stamping Co., Inc., 426
F.Supp.2d 579, 597 (W.D. Ky. 2006). “The legal rate of
interest is eight percent (8%) per annum.” Ky. Rev.
Stat. § 360.010(1). Therefore, National Water Services
is entitled to the total arbitration award of $196, 332.72
plus prejudgment interest on that award totaling $8, 778.12
($43.03 per day from October 31, 2016 to the date of the
Court's judgment). After entry of judgment, post-judgment
interest, which is calculated daily and compounded annually,
will accrue on the amount of the arbitration award and the
prejudgment interest earned on that award from the date of
judgment until paid. Cargill, 2012 WL 647503, at *5;
see also 28 U.S.C. § 1961. At the applicable
post-judgment interest rate of 1.11%, the arbitration award
and prejudgment interest will accrue post-judgment interest
in the amount of $6.24 per day.
and the Court being otherwise sufficiently advised, it is
hereby ORDERED that Plaintiff National Water Services's
motion to confirm the arbitration award (D.N. 53) is GRANTED.
The arbitration ...