Opinion ID: 2552191
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: ¶ 2 This case arises as a result of a series of software licensing agreements entered into between 1987 and 1990 by BYU and Softsolutions, the last of which was executed on June 1, 1990 (the Agreement). The Agreement provided that BYU would give Softsolutions an exclusive license to use its software technology called D-Search in exchange for royalty payments. The Agreement mandated mediation followed by arbitration for resolution of any contractual disputes. ¶ 3 The arbitration provision of the Agreement expressly set forth the scope of the arbitrator's powers and prohibited the arbitrator from add[ing] to, subtract[ing] from or modify[ing] any of the terms or conditions of the Agreement. [1] The Agreement provided that in the event of arbitration, the prevailing party was to be paid by the other party a reasonable sum for attorneys' fees and costs. Another provision of the Agreement also provided that Softsolutions was to pay all reasonable collection costs at any time incurred by BYU in obtaining payment of amounts past due, including court costs, expenses associated with litigation, and reasonable attorneys' fees, whether or not suit was commenced by BYU. ¶ 4 Almost immediately after the Agreement was executed and Softsolutions began using D-Search, a dispute arose between the parties concerning various competitors infringing on the patented software. When negotiations failed, the matter was submitted to mediation, as required by the Agreement. In July 1993, Softsolutions removed D-Search from its products and replaced it with another technology. In January 1994, Word-Perfect purchased the stock of Softsolutions Technology Corporation (STC), an affiliate of Softsolutions. WordPerfect was later acquired by Novell. ¶ 5 In February 1994, BYU initiated arbitration proceedings. In preparation for the arbitration, counsel for both parties prepared and submitted to the arbitrator a joint statement of issues to be arbitrated (the Submission Agreement). Arbitration ensued, and in July 1996, the arbitrator entered his arbitration award, granting BYU $1,672,467 in royalties and $115,000 in attorney fees. The award gave BYU royalties on sales made prior to March 1996. In his decision, the arbitrator described the issues submitted for arbitration in a fashion different from that included in the Submission Agreement of the parties. ¶ 6 Thereafter, Softsolutions filed an action for declaratory judgment in the district court seeking to have the arbitration award vacated or modified pursuant to Utah Code Ann. §§ 78-31a-14(1)(c) and 78-31a-15(1)(b) (1996). Softsolutions claimed that the arbitrator exceeded the powers granted to him under the terms of both the Agreement and the Submission Agreement or, alternatively, had based the award on matters not submitted to him. In response, BYU filed a motion with the court to confirm the arbitration award pursuant to section 78-31a-12 of the Utah Code. The parties then stipulated to consolidate the actions and agreed that the two motions would be treated as cross-motions. ¶ 7 On February 10, 1998, the district court denied Softsolutions' motion to vacate or modify the arbitrator's award, ruling that the arbitrator did not exceed his powers or base the award on a matter not submitted by the parties for arbitration. In so ruling, the district court adopted the arbitrator's description of the arbitrable issues. The district court granted BYU's motion to confirm the arbitration award, relying on Utah Code Ann. § 78-31a-12 (1996). The district court subsequently entered its judgment on July 7, 1998, awarding BYU $28,987.50 in additional attorney fees for the work of its in-house counsel in the action before the district court. The court based this calculation on what it determined was the current market rate of $150 per hour charged by attorneys engaged in similar private practice. The entire award including the additional attorney fees totaled $1,816,454.50, plus interest. Softsolutions appeals.