411 S.W.3d 766
Ky. Ct. App.2013Background
- Appellees sought damages from Roy Campbell’s estate; arbitration was binding and initial award granted January 16, 2004.
- Arbitration award was vacated by the Perry Circuit Court in April 2004 and appealed, leading to a 2006 appellate remand.
- On remand, Special Judge Johnson confirmed the arbitration award on February 22, 2010, despite differing conclusions from a prior judge.
- The record shows damages including loss of credit rating; the circuit court allowed concurrent submission of claims to arbitration.
- Appellees sought prejudgment interest from January 16, 2004; the circuit court and later order denied pre-judgment interest until 2010.
- Final disposition affirmed both the direct appeals and cross-appeals, with post-judgment interest set at the statutory rate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the award was properly vacated or affirmed under KRS 417.160 | Ison argues the award was vacated improperly and seeks reversal. | Appellees contend the award was within statutory grounds for confirmation on remand. | No reversible error; special judge's confirmation of the award upheld. |
| Allowability of loss of credit rating damages in arbitration | RHCI damages included credit-rating loss; argued properly within arbitration scope. | Campbell contested due process and lack of notice for the credit-rating claim. | Damages for credit rating were properly considered; no undue means shown. |
| Whether prejudgment interest from January 16, 2004, should be awarded | Rhci seeks prejudgment interest from the arbitration award date. | There was no enforceable award until February 22, 2010; prejudgment interest disallowed. | Prejudgment interest denied prior to February 22, 2010; affirmed. |
| Appropriate post-judgment interest rate | Appellees argue 12% post-judgment interest from April 26, 2006. | Court should apply 8% post-judgment interest as the damages were liquidated later. | Post-judgment interest at 8% applies; no abuse of discretion. |
Key Cases Cited
- 3D Enterprises Contracting Corp. v. Lexington-Fayette Urban County Government, 134 S.W.3d 558 (Ky. 2004) (arbitration awards review limited to statutory grounds for vacating)
- Carrs Fork Corp. v. Kodak Mining Co., 809 S.W.2d 699 (Ky. 1991) (statutory grounds for vacating under KRS 417.160)
- Conagra Poultry Co. v. Grissom Transp., Inc., 186 S.W.3d 243 (Ky. App. 2006) (appellate review not for damages merits)
- H.S. Leyman Co. v. Short, 283 S.W. (S.W.?) (Ky. 1926) (damages for injury to credit rating recognized as compensable)
- Duo-Therm Div., Motor Wheel Corp. v. Sheergrain, Inc., 504 S.W.2d 689 (Ky. 1973) (damages analogous to lost profits recoverable)
- Nucor Corp. v. General Electric Co., 812 S.W.2d 136 (Ky. 1991) (prejudgment interest on fixed liquidated claims )
- 3D Enterprises Contracting Corp. v. Lexington-Fayette Urban County Government, 134 S.W.3d 558 (Ky. 2004) (arbitration award review limited to statutory grounds)