{"id":777167,"date":"2015-05-28T06:51:35","date_gmt":"2015-05-28T12:51:35","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=777167"},"modified":"2015-05-26T16:52:29","modified_gmt":"2015-05-26T22:52:29","slug":"be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/","title":{"rendered":"Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees"},"content":{"rendered":"<p>Mark W. Frilot | The Dispute Resolver | January 15, 2015<\/p>\n<p>In Lasco Inc. v. Inman Construction Corp., et al., 2015 WL 129024 (Tenn. App. 2015), the trial court had vacated an arbitrator\u2019s award of attorneys\u2019 fees in favor of the defendant general contractor and its surety, concluding that the award exceeded the arbitrator\u2019s power.\u00a0 On January 9, 2015, the Tennessee Court of Appeals reversed the trial court and upheld the arbitrator\u2019s attorneys\u2019 fee award.<\/p>\n<p>The dispute involved non-payment claims by a subcontractor, Lasco Inc., against the general contractor,\u00a0 Inman Construction Corp., and Inman\u2019s surety, Travelers Casualty and Surety Company of America.\u00a0 After a four-day arbitration hearing, the arbitrator denied Lasco\u2019s payment claim and awarded Inman $162,333.44 in attorneys\u2019 fees, plus costs of $12,112.20, which represented the portion of the arbitration fees and expenses incurred by Inman that exceeded the American Arbitration Association\u2019s previous apportionment.<\/p>\n<p>Inman moved to confirm the award, and Lasco moved to vacate the attorneys\u2019 fee award.\u00a0 Lasco claimed that the arbitrator exceeded his authority because the parties\u2019 contract did not authorize an award of attorneys\u2019 fees.\u00a0 The trial court agreed with Lasco and vacated the award.\u00a0 Inman appealed.<\/p>\n<p>The Court of Appeals did not dispute that the contract at issue did not expressly provide for an award of attorneys\u2019 fees. \u00a0But, as Inman argued, the parties\u2019 contract incorporated the AAA\u2019s Construction Industry Rules as the rules governing an arbitration under the contract.\u00a0 \u00a0Rule 45(d)(ii) provides that an arbitration may \u201cinclude . . . an award of attorneys\u2019 fees if all parties have requested such an award or it is authorized by law or their arbitration agreement.\u201d\u00a0 Therefore, the Court of Appeals found that, by virtue of the parties\u2019 incorporation of the AAA\u2019s Construction Industry Rules into their agreement, the parties\u2019 contract did provide for an award of attorneys\u2019 fees if both parties\u2019 requested such an award.<\/p>\n<p>Inman requested an attorneys\u2019 fee award, and so did Lasco.\u00a0 In fact, Lasco\u2019s attorneys\u2019 fee request was based in part on Rule 45.\u00a0 Accordingly, the Court of Appeals ruled that the arbitrator had not exceeded his authority by awarding attorneys\u2019 fees to Inman.<\/p>\n<p>via <a href=\"http:\/\/abaconstructionforumdivision1.blogspot.com\/2015\/01\/be-careful-what-you-ask-for-tennessee.html\">The Dispute Resolver: Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mark W. Frilot | The Dispute Resolver | January 15, 2015 In Lasco Inc. v. Inman Construction Corp., et al., 2015 WL 129024 (Tenn. App. 2015), the trial court had vacated an arbitrator\u2019s award of attorneys\u2019 fees in favor of the defendant general contractor and its surety, concluding that the award exceeded the arbitrator\u2019s power.\u00a0&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\">Continue reading <span class=\"screen-reader-text\">Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172],"tags":[8308,8309,27],"class_list":["post-777167","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","tag-attorneys-fees-award","tag-construction-industry-rule-45","tag-construction-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Mark W. 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App. 2015), the trial court had vacated an arbitrator\u2019s award of attorneys\u2019 fees in favor of the defendant general contractor and its surety, concluding that the award exceeded the arbitrator\u2019s power.\u00a0&hellip; Continue reading Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise &amp; Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-05-28T12:51:35+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees\",\"datePublished\":\"2015-05-28T12:51:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\"},\"wordCount\":412,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Attorneys Fees Award\",\"Construction Industry Rule 45\",\"construction law\"],\"articleSection\":[\"Construction Law\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/be-careful-what-you-ask-for-tennessee-court-of-appeals-upholds-arbitrators-attorneys-fee-award-based-on-aaa-construction-industry-rule-45-when-both-parties-requested-an-award-of-fee\/\",\"name\":\"Be Careful What You Ask For: Tennessee Court of Appeals Upholds Arbitrator\u2019s Attorneys\u2019 Fee Award Based on AAA Construction Industry Rule 45 When Both Parties Requested an Award of Fees - Advise &amp; 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