Everman's Electric Company, Inc. v. J.J. Sosa & Associates, Inc.
1:14-cv-00440
S.D. Miss.Sep 22, 2017Background
- Everman’s Electric obtained an arbitration award against J.J. Sosa & Associates, Inc.; Sosa moved for a federal judgment enforcing the award, plus interest, attorneys’ fees, and costs.
- Everman objected only to the number of hours billed (nine total) claimed by Sosa’s counsel as excessive.
- Sosa submitted an affidavit detailing attorneys’ experience, hourly rates, and tasks (research, correspondence, strategy meetings) and defended the nine hours as reasonable.
- The arbitrator had awarded eight percent interest "from and after the date of the Award" but said nothing expressly about pre-judgment interest; Sosa sought eight percent post-judgment and pre-judgment interest.
- Court reviewed fee affidavit, found hours and hourly rates reasonable, allowed attorneys’ fees; addressed distinction between arbitrator-awarded interest and statutory post-judgment interest under 28 U.S.C. § 1961.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reasonableness of claimed attorneys’ time | Nine hours is excessive given counsel’s experience | Nine hours included research, strategy, correspondence, and enforcement work and is reasonable | Court found nine hours reasonable and hourly rates consistent with the region; fees awarded |
| Effect of arbitrator’s award of 8% interest on post-judgment interest | (no separate position) | Arbitrator’s 8% award should control post-judgment interest | Court held arbitrator’s post-award interest does not control post-judgment interest; §1961 governs post-judgment rate |
| Appropriate post-judgment interest rate | — | Request for 8% post-judgment interest | Post-judgment interest limited to rate in 28 U.S.C. §1961 (Treasury yield), not 8% |
| Pre-judgment interest for period between award and judgment | Objected only to fees; not contesting pre-judgment interest | Requested 8% pre-judgment interest from award date to judgment date | Court awarded pre-judgment interest at arbitrator’s 8% rate for period from arbitration award to federal judgment (Mississippi law governs) |
Key Cases Cited
- Tricon Energy Ltd. v. Vinmar Int’l, Ltd., 718 F.3d 448 (5th Cir. 2013) (distinguishes arbitrator-awarded post-award interest from federal post-judgment interest)
- Executone Info. Sys., Inc. v. Davis, 26 F.3d 1314 (5th Cir. 1994) (state law governs pre-judgment interest on arbitrator awards)
- Moeller v. Am. Guar. & Liab. Ins. Co., 812 So. 2d 953 (Miss. 2002) (pre-judgment interest may be awarded when principal is fixed prior to judgment)
- McVay v. Halliburton Energy Servs., Inc., 688 F. Supp. 2d 556 (N.D. Tex. 2010) (awarding pre-judgment interest from arbitration award date to judgment date)
