Fee Award Vacated in Motion to Compel Arbitration

The prevailing party fee clause in this case said that fees would be awarded in connection with any action to collect sums due.  What about prevailing on a motion to compel arbitration to decide the debt collection dispute — is that enough to trigger the fee clause?  The Supreme Court said no — legal fees are not yet due because the merits of the case had not yet been decided — and thus vacated an award of fees which had been granted to Belfor USA in a dispute with an owner.   The Court hinted the outcome might have changed if the clause had been written differently (i.e., awarding fees to the prevailing party for enforcing a contractual term).

Copy of opinion (Belfor v. Thiel) also available here Download file