Poet Nutrition, Inc. v. AFEC Commodities (Services and Solutions), Inc.
MEMORANDUM OPINION AND ORDER granting Application to Confirm Arbitration Award and 11 Motion for Default Judgment. Signed by U.S. District Judge Lawrence L. Piersol on 10/4/17. (SLW)
UNITED STATES DISTRICT COURT
OCT 0 4 201?
DISTRICT OF SOUTH DAKOTA
APPLICATION TO CONFIRM
ARBITRATION AWARD AND
AND ORDER GRANTING
Pending before the Court is Petitioner,POET Nutrition,Inc.'s. Motion for Default Judgment
against Respondent, AFEC Commodities(Services and Solutions), Inc., for the reliefrequested in
its Application to Confirm Arbitration Award.
POET and AFEC executed a series ofcontracts for the sale ofDakota Gold Distillers Dried
Grains and Solubles ("DDGS") to AFEC by POET. The contracts between POET and AFEC
contained provisions requiring that any dispute arising from the contracts be submitted to arbitration
and requiring that the arbitration be conducted in accordance with the rules ofthe National Grain and
Feed Association ('TSIGFA"). After executing the contracts, AFEC failed to perform under the
contracts by refusing to accept delivery of DDGS,thereby creating a dispute between the parties.
POET commenced arbitration proceedings in accordance with the arbitration provisions of the
contracts between the parties.
On June 28,2016, a hearing was held before NGFA arbitrators where both parties appeared
and offered evidence through live testimony. On December 2,2016,the NGFA arbitrators issued a
written decision awarding POET $1,520,876.80 in damages from AFEC ("the Award"). AFEC
waived its right to appeal the Award.
On May 2,2017,POET filed an Application to Confirm Arbitration Award.(Doc. 1.) AFEC
was served with the Application on May 19, 2017.(Doc. 7.)
POET requests the following relief:(1) confirmation of the Award made by the National
Grain and Feed Association;(2) entry ofjudgment on the Award in favor of POET and against
AFEC for the sum of $1,520,876.80; and (3) costs pursuant to Rule 54(d)(1) of the Federal Rules
of Civil Procedure and Local Rule 54.1(B) in the amount of$465.00.
AFEC has not filed or served a response to POET's Application and has not made anyformal
appearance in this action.' On June 26,2017,POET filed an Motion for Entry ofDefault. (Doc. 8.)
On July 24, 2017,the Clerk ofCourt filed an Entry of Default in favor ofPOET and against AFEC
and a copy was mailed to the registered agent for AFEC.(Doe. 10.)
On July 25, 2017,POET filed a Motion for Default Judgment.(Doc. 11.) As ofthe date of
this Order, AFEC has failed to answer the Application to Confirm Arbitration Award or the Motion
for Default Judgment, or otherwise defend the action as provided by the Federal Rules of Civil
Title 9, Section 9 of the United States Code, pursuant to which POET seeks a judgment
confirming the arbitration award, provides in pertinent part:
If the parties in their agreement have agreed that a judgment of the court shall be
entered upon the award made pursuant to the arbitration, and shall specify the court,
then at any time within one year after the award is made any party to the arbitration
may apply to the court so specified for an order confirming the award,and thereupon
the court must grant such an order unless the award is vacated, modified,or corrected
as prescribed in sections 10 and 11 of this title. If no court is specified in the
agreement ofthe parties,then such application my be made to the United States court
in and for the district within which such award was made. Notice ofthe application
'By email dated June 7,2017,AFEC's lawyer represented to POET's lawyer that AFEC will
not contest the Application to Confirm Arbitration Award.(Doc. 9-2.)
shall be served upon the adverse party,and thereupon the court shall havejurisdiction
ofsuch party as though he had appeared generally in the proceeding.
9 U.S.C.§ 9. The requirements imposed under9 U.S.C.§ 9 have all been fulfilled and POET is thus
entitled to an order and judgment confirming the arbitration award issued in this matter.
Pursuant to 9 U.S.C. §9 and Federal Rules ofCivil Procedure 55(b)(2),54(d)(1)and Local
Rule 54.1(B), it is hereby ORDERED:
That POET'S Motion for Default Judgment(Doc. 11)is GRANTED.
That the arbitration award of $1,520,876.80 that was issued by the National Grain
and Feed Association in this matter is confirmed.
POET is awarded costs of$465.00.
day of October, 2017.
BY THE COURT:
M.awrence L. Piersol
United States District Judge
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