Dist. Ct. did not err in granting plaintiff’s request to enforce $9 million arbitration award in favor of plaintiff, where plaintiff had alleged that defendants breached contract to renovate hotel and to operate said hotel using plaintiff’s business methods and trademarks. While defendants argued that arbitrator improperly refused their request to depose attorney regarding circumstances of negotiations leading up to signing of contract, Ct. found no violation under 9 USC section 10(a)(3) for alleged “refusal to hear evidence,” since said statute pertained only to conduct occurring during hearing and not during discovery. Moreover, attorney’s advice during negotiations was not relevant to parties’ contract dispute, especially where contract had integration clause that foreclosed resorting to negotiation history as interpretation tool. Also, Ct. rejected defendants’ argument that award conflicted with federal and state franchise law, where: (1) defendants’ purported “legal errors” did not qualify as ground to refuse enforcement of arbitration award; and (2) none of defendants’ arguments concerned violation of rights of third-parties.
Federal 7th Circuit Court
Civil Court
Arbitration