Bloom Energy Corporation v. Badger

CourtDistrict Court, N.D. California
DecidedSeptember 8, 2021
Docket4:21-cv-02154
StatusUnknown

This text of Bloom Energy Corporation v. Badger (Bloom Energy Corporation v. Badger) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bloom Energy Corporation v. Badger, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA

7 BLOOM ENERGY CORPORATION, Case No. 21-cv-02154-PJH 8 Petitioner,

9 v. ORDER DENYING COUNTER MOTION FOR VACATUR OF FINAL 10 DWIGHT BADGER, et al., AWARD, GRANTING PETITION TO CONFIRM THAT AWARD, AND 11 Respondents. DENYING REQUESTS TO SEAL 12 Re: Dkt. No. 1, 2, 19, 29, 29-3, 30, 34

13 Before the court is petitioner Bloom Energy Corporation’s (“petitioner”) petition to 14 confirm arbitration award (the “petition”) and for entry of judgment. Dkt. 1. Also before 15 the court is respondents’ counter motion for vacatur of the subject arbitration award (the 16 “counter motion”). Dkt. 19; Dkt. 29-3. Further before the court are petitioner’s requests 17 to seal various documents filed in support of the petition and counter motion. Dkt. 2 18 (motion to seal the arbitration award); Dkt. 34 (declaration filed in support of respondents’ 19 administrative motion to seal (Dkt. 29) supplemental response filings). 20 The matter is fully briefed and suitable for decision without oral argument. Having 21 read the parties’ papers and considered their arguments and the relevant legal authority, 22 the court DENIES the counter motion, GRANTS the petition, and DENIES the requests to 23 seal. 24 BACKGROUND 25 Petitioner is a company that provides electricity. Dkt. 1 ¶ 1. Advanced Equities, 26 Inc. (“AEI”) was an investment advisory firm. Id. ¶ 2. AEI was the parent company of 27 Advanced Equities Financial Corp., Inc. (“AEFC”). Id. Respondents Dwight Badger 1 respectively, an officer and director of AEFC. Id. 2 In March 2009, petitioner engaged AEI to raise money for petitioner. Id. ¶ 6. 3 Respondents led AEI in that effort. Id. When raising that money, respondents 4 purportedly made misrepresentations concerning petitioner’s business. Compare id. with 5 Dkt. 19 ¶ 6. The Securities and Exchange Commission (“SEC”) caught wind and initiated 6 an investigation. Dkt. 1 ¶ 6. In 2012, the SEC issued an order sanctioning respondents. 7 Id. The SEC did not take any action against petitioner. Id. The relationship between 8 petitioner and respondents soured. Id. ¶ 7. The parties disputed responsibility for the 9 misrepresentations. Id. 10 In 2014, the parties were thought to have settled that fight. Id. Two writings reflect 11 that settlement, namely the Confidential Agreement (“CA”) (Dkt. 1-3) and the Securities 12 Acquisition Agreement (“SAA”) (Dkt. 1-4) (collectively, the “settlement agreements”). Id. 13 Those agreements include provisions requiring the parties to arbitrate any future dispute 14 between them (without qualification) before the American Arbitration Association (“AAA”) 15 in Santa Clara, California. Dkt. 1 ¶ 7. Those provisions are materially similar. Id. ¶ 8. 16 Neither party disputes the validity of either provision. 17 Fast-forward a few years. On July 20, 2018, respondents initiated an arbitration 18 proceeding against petitioner. Dkt. 1 ¶ 9. That proceeding is marked AAA “case no. 01- 19 18-0002-7891.” Id. at 1. In that proceeding, respondents allege that they were 20 fraudulently induced into signing the CA and SAA. Id. On May 2019, the AAA appointed 21 a three-member arbitration panel (the “panel”) to the proceeding. Id. ¶ 10. In relevant 22 part, the panel included a Loyola Law School professor, Hiro Aragaki (“Aragaki”). Id. 23 On March 16, 2021, the panel issued the subject arbitration award (the “Final 24 Award”). Id. ¶ 11; Dkt. 2-4 (sealed version of Final Award). In it, the panel (1) dismissed 25 respondents’ claims with prejudice and (2) ordered respondents to pay petitioner 26 $966,760.31 in attorneys’ fees and costs pursuant to the settlement agreements’ fee- 27 shifting conditions. Dkt. 1 ¶ 11; Dkt. 2-4 at 28. 1 Id. ¶ 11 n.2. On March 26, 2021, petitioner filed the instant petition asking the court to 2 confirm the Final Award under the Federal Arbitration Act, Title 9 U.S.C. § 9. Id. ¶¶ 12- 3 15. Petitioner requests that the court enter judgment in conformity with that award. Id. ¶¶ 4 16-17. Petitioner further requests pre- and post-judgment interest on the $966,760.31 5 awarded in attorney’s fees and costs. Id. ¶ 18. 6 On June 9, 2021, respondents filed a 13-page response (the “initial response”) to 7 the petition. Dkt. 19.1 In their initial response, respondents argue that the court should 8 deny the petition, vacate the Final Award, and direct the AAA to continue the arbitration 9 with a new panel. Id. at 1-2. Respondents failed to file any evidence in support of their 10 initial response. 11 On July 15, 2021, the court held a case management conference in this action. 12 Dkt. 27. At that conference, counsel for respondents, Andrew Munro (“Counsel Munro”), 13 requested an opportunity to supplement the initial response. Dkt. 28. Counsel Munro 14 indicated that such supplement would serve as a viable substitute for some unspecified 15 “counter petition” that respondents suggested (in their initial response) they intended to 16 later file. Dkt. 28. The court permitted respondents to file a supplemental brief with 17 accompanying evidence and, correspondingly, petitioner to file a reply to that brief. Id. 18 On July 23, 2021, respondents filed their supplemental brief (the “supplemental 19 response”). Dkt. 29-3. In it, they re-characterize paragraph 13 of their initial response 20 (and only that paragraph) as a “counter motion” for vacatur. Id. at 4. They further state 21 that they file their supplemental response both in opposition to the petition and in support 22 of their counter motion. Id. On July 30, 2021, petitioner filed its reply to the supplemental 23 response (the “supplemental reply”). 24 In this order, the court will construe respondents’ responses as both an opposition 25 to the petition and an independent counter motion to vacate the Final Award. Given that 26 1 Respondents refiled their initial response on July 12, 2021. Compare Dkt. 19 (dated 27 June 3, 2021) with Dkt. 25 (dated July 12, 2021). At the case management conference, 1 respondents rely on identical arguments in support of both their opposition and counter 2 motion, the court will simultaneously address the counter motion and petition. The court 3 will detail additional facts and procedural events concerning the arbitration as necessary 4 below. 5 DISCUSSION 6 I. Counter Motion to Vacate and Petition to Confirm Arbitration Award 7 A. Legal Standard 8 Title 9 U.S.C. § 9 provides that a party to an arbitration may apply for an order 9 confirming an arbitration award within one year after such award is made. 9 U.S.C. § 9. 10 If the parties’ arbitration agreement does not specify a court in which to file that 11 application, then the applying party may file it in the district court within which such award 12 was made. Id. 13 When presented with an application to confirm an arbitration award, the district 14 court “must grant an order unless the award is vacated, modified, or corrected.” Id. 15 “There is nothing malleable about ‘must grant,’ which unequivocally tells courts to grant 16 confirmation in all cases, except when one of the ‘prescribed’ exceptions applies.” Hall 17 St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576, 587 (2008). 18 The Ninth Circuit has explained that “judicial review of an arbitrator's decision is 19 both limited and highly deferential.” Barnes v. Logan, 122 F.3d 820, 821 (9th Cir. 1997).

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Bloom Energy Corporation v. Badger, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bloom-energy-corporation-v-badger-cand-2021.