Weinberg v. Silber

140 F. Supp. 2d 712, 2001 U.S. Dist. LEXIS 5608, 2001 WL 431475
CourtDistrict Court, N.D. Texas
DecidedApril 25, 2001
Docket3:99-cv-01432
StatusPublished
Cited by14 cases

This text of 140 F. Supp. 2d 712 (Weinberg v. Silber) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weinberg v. Silber, 140 F. Supp. 2d 712, 2001 U.S. Dist. LEXIS 5608, 2001 WL 431475 (N.D. Tex. 2001).

Opinion

MEMORANDUM OPINION & ORDER

KENDALL, District Judge.

Before the Court are:

(1) Defendants’ Motion to Confirm Arbitration Award, filed November 9, 2000; Plaintiffs’ Response to Defendants’ Motion and Cross-Motion to Vacate Arbitration Award, filed November 29, 2000; Defendants’ Combined Reply in support of Motion to Confirm and Response to Motion to Vacate, filed December 14, 2000; Plaintiffs’ Reply in Support of Motion to Vacate, filed December 29, 2000; and all supplemental materials filed in connection with the cross-motions; and

(2) Defendants’ Motion for Attorney’s fees and pre-judgment interest, filed December 14, 2000.

The parties’ request for a hearing in connection with this matter is DENIED. Plaintiffs Motion to Vacate is largely predicated on attempts to have this Court reevaluate the arbitrator’s findings of fact. There are no contested questions of fact concerning the arbitrator’s conduct in this case that would necessitate an evidentiary hearing. Instead, the question is whether certain arbitrator behavior alleged by the Plaintiff rises to a level of fundamental unfairness that would justify vacation. A hearing is not necessary to resolve these issues. See Legion Ins. Co. v. Ins. Gen. Agency, Inc., 822 F.2d 541 (5th Cir.1987).

For the reasons stated below, Plaintiffs Motion to Vacate the Award is DENIED. Defendant’s Motion to Confirm the Award is DENIED without prejudice. This case is STAYED pending remand to the arbitrator, until such time as a corrected award is presented to the Court with a renewed motion to confirm, or until the parties inform the Court that they have resolved their dispute without the need for further action by the Court. To the extent Plaintiff has requested that proceedings be “re-opened” and errors in the award be corrected, the Court GRANTS that limited request for relief and REMANDS the case to the arbitrator with instructions that he clarify the award as discussed in Parts II(C.) and III., below. Defendant’s Motion for Attorney’s Fees and pre-judgment interest are DENIED without prejudice since the Court is not entering a final judgment at this time.

*716 I. Background

This case involves a dispute between two feuding sports agents who at one time had several joint venture agreements to recruit clients and split fees. In 1998, the parties entered an oral joint venture agreement related to professional football players. The parties did not commit the agreement to writing because Plaintiff Weinberg and Defendant Silber could not agree on written terms. See Weinberg Aff. ¶21, PL’s Exh. 1. The various joint venture arrangements subsequently fell apart in a particularly acrimonious fashion, and the parties hotly disputed the amounts of money they owed to each other. The disputes concerned both shared expenses, and contests over which high-profile professional athletes were clients of the joint venture, whose fees were to be shared.

After filing several lawsuits against each other, the parties signed an agreement on December 1, 1999 to arbitrate their disputes, releasing each other from all claims not arbitrated. See Agreement to Arbitrate Disputes, ¶¶ 1, 5, 8(A), Pl.’s Exh. 17. The parties agreed to Gary Berman of Dallas, Texas, as arbitrator, and set a date of April 1, 2000 by which time the arbitration was to occur. See id., at ¶ 8(H). The parties do not appear to have signed a separate contract with Gary Berman establishing the ground rules for the arbitration or, if so, neither party has submitted such a document to the Court. An arbitration hearing occurred by March 17, 2000. See 3/23/00 Carnahan letter to Ber-man, Pl.’s Exh. 20. Neither party has provided evidence concerning exactly what was and was not discussed at the March, 2000 arbitration hearing, and the hearing was not transcribed.

The arbitrator delayed his decision after the conclusion of the hearing for many months. In September, 2000, Plaintiff successfully negotiated a nine-year, $135,450,000 deal on behalf of one of the disputed clients: Washington Redskins running back Stephen Davis. Shortly thereafter, the arbitrator contacted Plaintiff Weinberg’s attorney and requested that he provide information concerning the new Davis contract. See Davenport Aff. ¶ 3, PL’s Exh. 35. Plaintiff contends that the arbitrator told his attorney that without receiving such information, “he would accept as fact the outside information contained in the news reports ... and calculate ... an award using that evidence.” See Davenport Aff., ¶ 4. Plaintiff complied with this request, and there is no evidence that he objected.

Arbitrator Berman issued his award on October 20, 2000. • See Arbitration Award, PL’s Exh. 27. The arbitrator ordered that Weinberg pay Silber a total of $2,079,495, relating exclusively to fees earned from the representation of Stephen Davis. See id. at ¶¶ 8-9. The arbitrator ordered that each party take nothing with respect to the numerous other clients subject to the arbitration. See id. at ¶ 5.

The parties have brought cross motions to confirm and vacate the arbitration award. Plaintiff Weinberg argues that the arbitrator erred in finding that Stephen Davis was ever a subject of the parties’ joint venture agreement, erred in finding that Plaintiff would be entitled to three percent of Stephen Davis’s massive nine year deal, and erred in considering the September, 2000 Davis contract six months after the close of the actual hearing. Furthermore, Plaintiff argues that there are certain errors present on the face of the award, and that there are ambiguities in the ultimate amount Weinberg must pay Silber due to certain unaddressed contingencies. Plaintiff requests that this Court either vacate the award and refer it to a new arbitrator, modify the award to correct certain errors, or otherwise “re-open” the arbitration proceedings. See PL’s *717 Resp., at 18-19, 22. Defendant moves to confirm the award.

II. Analysis

A. Review of Arbitral Awards

Under 9 U.S.C. § 9, an arbitration award may be confirmed in the district court in and for the district in which the award was made. The Federal Arbitration Act lists the bases for vacating or modifying an arbitral award. See 9 U.S.C. § 10(a). The Fifth Circuit has also identified several non-statutory bases for vacating an award, such as (1) the award is contrary to public policy; (2) the award is arbitrary and capricious; (3) the award fails to dr aw. its essence from the underlying contract; and (4) the award shows manifest disregard for the law. See Williams v. Cigna Finan. Advisors, Inc., 197 F.3d 752 (5th Cir.1999), cert. denied, 529 U.S. 1099, 120 S.Ct. 1833, 146 L.Ed.2d 777 (2000).

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140 F. Supp. 2d 712, 2001 U.S. Dist. LEXIS 5608, 2001 WL 431475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinberg-v-silber-txnd-2001.