PolyOne Corporation v. Westlake Vinyls, Inc.

CourtDistrict Court, W.D. Kentucky
DecidedFebruary 11, 2020
Docket5:19-cv-00121
StatusUnknown

This text of PolyOne Corporation v. Westlake Vinyls, Inc. (PolyOne Corporation v. Westlake Vinyls, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PolyOne Corporation v. Westlake Vinyls, Inc., (W.D. Ky. 2020).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY PADUCAH DIVISION CIVIL ACTION NO. 5:19-CV-121-TBR

POLYONE CORPORATION, PLAINTIFF

v.

WESTLAKE VINYLS, INC., DEFENDANT

MEMORANDUM OPINION AND ORDER

This matter is before the Court on Plaintiff PolyOne Corporation’s Motion to Vacate Final Arbitration Award. [DN 1]. Defendant Westlake Vinyls, Inc. responded, [DN 35], and PolyOne replied, [DN 39]. Additionally, Westlake filed a Motion to Confirm Final Arbitration Award. [DN 13]. PolyOne responded, [DN 34], and Westlake replied, [DN 37]. This matter is ripe for adjudication. For the reasons stated herein, PolyOne’s Motion to Vacate, [DN 1], is DENIED and Westlake’s Motion to Confirm, [DN 13], is GRANTED. BACKGROUND PolyOne and Westlake have long disputed the allocation of investigation and remediation costs incurred due to environmental contamination at an industrial complex in Calvert City, Kentucky (the “Site”). Further details concerning the relationship between these parties can be found in this Court’s Memorandum Opinion in PolyOne Corporation v. Westlake Vinyls, Inc., No. 5:17-CV-157-TBR, 2018 WL 2437241 (W.D. Ky. May 30, 2018). The current dispute arises from the 2007 Settlement Agreement, in which the parties agreed to resolve litigation related to environmental liabilities arising on or before July 31, 2007, and to arbitrate the allocation of certain environmental costs (“Allocable Costs”) arising after that date. [See DN 6-1]. On May 19, 2017, PolyOne filed a Demand for Arbitration pursuant to the 2007 Settlement Agreement. [DN 6 at 226]. The parties spent the next two years engaged in arbitration before a panel of three experienced arbitrators. [DN 13 at 372]. The arbitration hearing itself “covered 36 trial days over more than four months, and included nearly two hundred hours of testimony, approximately 7,000 exhibits, 36 live witnesses and 16 witnesses by deposition.” Id. at 373. The parties filed extensive post-hearing briefs and the Panel requested additional time to prepare its award in light of the complexity of the case. Id. On May 22, 2019, the Panel issued its

Final Award unanimously assigning 100% of the Allocable Costs to PolyOne. Id. at 375. On August 20, 2019, PolyOne filed the Motion to Vacate Final Arbitration Award currently before the Court. [DN 1]. LEGAL STANDARD The Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1–16, expresses the federal policy favoring enforcement of arbitration awards. See generally Volt Info. Scis., Inc. v. Bd. of Trs. of Leland Stanford Junior Univ., 489 U.S. 468, 479, 109 S.Ct. 1248, 103 L.Ed.2d 488 (1989). To encourage parties to agree to arbitration, the FAA ensures that “arbitration awards are both fair and final.” Solvay Pharm., Inc. v. Duramed Pharm., Inc., 442 F.3d 471, 475 (6th Cir. 2006). The

Act promotes finality “by substantially limiting the occasions for judicial review,” id., and expressing a “presumption that arbitration awards will be confirmed.” Andersons, Inc. v. Horton Farms, Inc., 166 F.3d 308, 328 (6th Cir. 1998). Under the FAA, courts may vacate an arbitration award under the four express statutory grounds in § 10(a)(1)-(4). And, though accompanied by some uncertainty, see Hall St. Assoc., L.L.C. v. Mattel, Inc., 552 U.S. 576, 128 S.Ct. 1396, 170 L.Ed.2d 254 (2008), the Sixth Circuit also recognizes that judicial intervention may be appropriate where arbitrators act with “manifest disregard for the law,” see, e.g., Grain v. Trinity Health, 551 F.3d 374, 380 (6th Cir. 2008), cert. denied, 558 U.S. 820, 130 S.Ct. 96, 175 L.Ed.2d 30 (2009); Coffee Beanery, Ltd. v. WW, L.L.C., 300 F. App’x 415 (6th Cir. 2008), cert. denied, 558 U.S. 819, 130 S.Ct. 81, 175 L.Ed.2d 28 (2009). In light of the policies underlying the FAA, a party seeking vacatur of an arbitration award “must clear a high hurdle.” Stolt–Nielsen S.A. v. AnimalFeeds Int'l Corp., 559 U.S. 662, 130 S.Ct. 1758, 1767, 176 L.Ed.2d 605 (2010). “When courts are called on to review an

arbitrator’s decision, the review is very narrow; [it is] one of the narrowest standards of judicial review in all of American jurisprudence.” Uhl v. Komatsu Forklift Co., 512 F.3d 294, 305 (6th Cir. 2008) (alteration in original) (quoting Nationwide Mut. Ins. Co. v. Home Ins. Co., 429 F.3d 640, 643 (6th Cir. 2005)); see also NCR Corp. v. Sac–Co., Inc., 43 F.3d 1076, 1079 (6th Cir. 1995) (noting that a court’s review of an arbitration award “is generally extremely narrow”). Thus, as the U.S. Supreme Court has long held, “the courts play only a limited role when asked to review the decision of an arbitrator,” and are not authorized to reconsider the merits of an award. United Paperworkers Int'l Union, AFL–CIO v. Misco, Inc., 484 U.S. 29, 36, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987). Stated another way, even “the arbitrator's ‘improvident, even silly,

factfinding’ does not provide a basis for a reviewing court to refuse to enforce an award.” Major League Baseball Players Ass'n v. Garvey, 532 U.S. 504, 509, 121 S.Ct. 1724, 149 L.Ed.2d 740 (2001) (quoting Misco, 484 U.S. at 39, 108 S.Ct. 364). Accordingly, as the Sixth Circuit has succinctly instructed, “[C]ourts must refrain from reversing an arbitrator simply because the court disagrees with the result or believes the arbitrator made a serious legal or factual error.” Solvay, 442 F.3d at 476 (alteration in original) (emphasis omitted) (quoting Misco, 484 U.S. at 38, 108 S.Ct. 364). In essence, “if a court can find any line of argument that is legally plausible and supports the award then it must be confirmed.” Id. (quoting Merrill Lynch, Pierce, Fenner & Smith v. Jaros, 70 F.3d 418, 421 (6th Cir. 1995)). DISCUSSION The issue before the Court is whether to confirm or vacate the final arbitration award issued by the Panel on May 22, 2019. The Sixth Circuit interprets §§ 9 and 10 of the FAA as making clear that confirmation or vacatur is to be a summary proceeding, “and [that] the court must confirm the award where it is not vacated, modified or corrected.” Wachovia Securities,

Inc. v. Gangale, 125 F. App’x 671, 676 (6th Cir. 2005). Under the FAA, an arbitration award may be vacated on any of the following statutory grounds: 1. where the award was procured by corruption, fraud, or undue means; 2. where there was evident partiality or corruption in the arbitrators, or either of them; 3.

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Related

Hall Street Associates, L. L. C. v. Mattel, Inc.
552 U.S. 576 (Supreme Court, 2008)
Andersons, Inc. v. Horton Farms, Inc.
166 F.3d 308 (Sixth Circuit, 1998)
Uhl v. Komatsu Forklift Co., Ltd.
512 F.3d 294 (Sixth Circuit, 2008)
Grain v. Trinity Health, Mercy Health Services Inc.
551 F.3d 374 (Sixth Circuit, 2008)
Major League Baseball Players Assn. v. Garvey
532 U.S. 504 (Supreme Court, 2001)
Wachovia Securities, Inc. v. Gangale
125 F. App'x 671 (Sixth Circuit, 2005)
Coffee Beanery, Ltd. v. WW, L.L.C.
300 F. App'x 415 (Sixth Circuit, 2008)
Muskegon Central Dispatch 911 v. Tiburon, Inc.
462 F. App'x 517 (Sixth Circuit, 2012)

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PolyOne Corporation v. Westlake Vinyls, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/polyone-corporation-v-westlake-vinyls-inc-kywd-2020.