National Water Services, LLC v. ACC Construction Co., Inc.
Filing
57
MEMORANDUM OPINION & ORDER by Judge David J. Hale on 5/22/2017;for the reasons stated forth in this opinion, Plaintiff National Water Service- motion to confirm the arbitration award (D.N. 53) is GRANTED. The arbitration award is CONFIRMED. A separate judgment will be issued this date.cc:counsel (ARM)
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF KENTUCKY
LOUISVILLE DIVISION
NATIONAL WATER SERVICES, LLC,
Plaintiff,
v.
Civil Action No. 3:12-cv-792-DJH
ACC CONSTRUCTION CO., INC.,
Defendant.
* * * * *
MEMORANDUM OPINION AND ORDER
This 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.
I.
National 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.)
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Count 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)
ACC 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.)
The 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.)
II.
When 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.”
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Dawahare v. Spencer, 210 F.3d 666, 669 (6th Cir. 2000). The Court finds no reason to vacate,
modify, or correct the award.
National 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 prejudgment interest beyond that awarded by the arbitrator. (D.N. 54, PageID # 249)
III.
The 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. §
3
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.
Accordingly, 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 award is CONFIRMED. A separate judgment
will be issued this date.
May 22, 2017
David J. Hale, Judge
United States District Court
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