Opinion ID: 2548987
Heading Depth: 2
Heading Rank: 3

Heading: did the arbitrator lack jurisdiction to modify or correct the february 16, 2001 decision and interim award?

Text: American requested the arbitrator to modify or correct the interim award, specifically the prejudgment interest, due to an evident miscalculation of figures, under I.C. § 7-913(a)(1). American argues pursuant to Schilling v. Allstate Ins. Co., 132 Idaho 927, 931, 980 P.2d 1014, 1018 (1999), the failure to calculate prejudgment interest falls under an evident miscalculation of figures, therefore when prejudgment interest should not be calculated, but is, that too must be an evident miscalculation of figures, allowing the arbitrator to correct its decision. Pursuant to I.C. § 7-909, upon application of a party, an arbitrator may modify or correct an award pursuant to I.C. § 7-913(a)(1) or (3). In order for the arbitrator to have authority to modify or correct the award there must be an evident miscalculation of figures, an evident mistake in the description of any person, thing or property, or the award is imperfect in a matter of form. I.C. § 7-913(a)(1) and (3). Absent an agreement to the contrary, an arbitrator has authority under I.C. § 7-910 to award prejudgment interest. Schilling, 132 Idaho at 929, 980 P.2d at 1016; Wolfe v. Farm Bureau Ins. Co., 128 Idaho 398, 403, 913 P.2d 1168, 1173 (1996). Prejudgment interest is allowed on money due by an express contract, I.C. § 28-22-104, and should be awarded when it is capable of mathematical computation. Dillon v. Montgomery, 138 Idaho 614, 617, 67 P.3d 93, 96 (2003). In the first arbitrator's award dated February 16, 2001, the arbitrator recognized he had the authority and jurisdiction to award prejudgment interest pursuant to I.C. §§ 7-910 and 28-22-104(1). Furthermore, the interest should be calculated using the entire award under the uninsured motorist clause from the date of the accident. More importantly, the arbitrator recognized American's argument that the compensatory damages award may be subject to subrogation for worker's compensation benefits. In recognizing this, the arbitrator stated, I cannot consider the effect of subrogation in my decision and do not do so, even with respect to pre-award interest. Without considering subrogation issues, the arbitrator awarded $336,023.94 in prejudgment interest. This calculation is not in error. The arbitrator calculated the maximum allowed by the contract without taking into consideration the worker's compensation claim or rights to subrogation. The February 16, 2001 award contained no evident miscalculation or misdescription pursuant to I.C. § 7-913(a)(1). Landmark v. Mader Agency, Inc., 126 Idaho 74, 76, 878 P.2d 773, 775 (1994). There was no mathematical error. The arbitrator determined the maximum compensatory damages and prejudgment interest allowed without taking into consideration subrogation issues. This is exactly what he was required to do pursuant to the amended pre-hearing scheduling order. The arbitrator was not to concern himself with the potential worker's compensation claim and/or the subrogation issues. The parties agreed to allow the arbitrator to calculate this type of award. It was error for the arbitrator to modify the award pursuant to I.C. § 7-913(a)(1) because there were no evident miscalculations.