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Moro Aircraft Leasing, Inc. v. Keith
3:10-cv-02708
| N.D. Ohio | Oct 22, 2012
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Background

  • 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)
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Case Details

Case Name: Moro Aircraft Leasing, Inc. v. Keith
Court Name: District Court, N.D. Ohio
Date Published: Oct 22, 2012
Docket Number: 3:10-cv-02708
Court Abbreviation: N.D. Ohio