Moro Aircraft Leasing, Inc. v. Keith
3:10-cv-02708
| N.D. Ohio | Oct 22, 2012Background
- Moro initiated suit in December 2010 over a funding agreement: Moro would provide $510,000 collateral for about $6,000,000 in funding, to be refunded upon first disbursement; no collateral was returned and no funds disbursed.
- Defendants included Jon L. Keith and several corporate entities; Does 1–10 were named.
- Initial motions: Walton dismissed for lack of personal jurisdiction; Keith’s motion to compel arbitration granted and his claims stayed pending arbitration; other claims stayed by stipulated order.
- Arbitration occurred May 2012 in Sylvania, Ohio; Keith attended in person; Harvey, Corporate Lending & Corporate Leasing, Inc., and Watson, III provided written input.
- Arbitration award issued June 20, 2012 in Moro’s favor against Hirter, Clarendon Development Holdings, Corporate Leasing & Corporate Leasing, Harvey, Walton, Watson, and Watson PA; Keith’s claims denied.
- Moro moved to confirm the arbitration award; the court granted the motion under 9 U.S.C. § 9 and issued a detailed confirmation order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FAA requires confirming the arbitration award | Moro properly filed with AAA; notice given; arbitration conducted; award unopposed. | Keith and others did not oppose; but FAA presumes confirmation when no challenge is made. | Yes; the award is confirmed. |
| Allocation of arbitration costs and fees | Awardable administrative and arbitrator fees should be borne by the responsible respondents. | Respondents contest allocation or burden sharing of fees. | Fees and expenses allocated to Hirter, Clarendon, Corporate Leasing, Harvey, Walton, and Watson jointly and severally; Moro reimbursed $20,710.12. |
| Denial of claims against Keith | Keith was subject to the arbitration and included in the award; claims should be confirmed against others while Keith’s are denied. | Keith’s involvement should be resolved via arbitration; not liable. | All claims against Keith denied. |
Key Cases Cited
- Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (U.S. 1983) (liberal policy in favor of arbitration agreements)
- Dawahare v. Spencer, 210 F.3d 666 (6th Cir. 2000) (presumption of confirmation under FAA)
