Opinion ID: 2564358
Heading Depth: 3
Heading Rank: 2

Heading: The Original Arbitration Award

Text: After a three-day arbitration hearing, which was held on February 18, 19, and 20, 2004, the arbitrator issued his arbitration award on March 18, 2004 (the original award). The arbitrator found that UPW's early termination was a breach of the Plan Agreement and that, therefore, Dawson was entitled to all of its administrative fees anticipated to be paid under the two-year agreement, plus its out-of-pocket expenses, subject to Dawson's obligation to mitigate those expenses. In determining the amount of damages, the arbitrator relied upon Dawson's Plan Income Statement and other financial records, which reflected, inter alia, the following: Premiums received from UPW ............. $799,326.00 Total expenses paid from the Reserve ... - 719,023.60 __________ Subtotal ............................. 80,302.40 Interest/Investment Gain ............... + 6,937.68 __________ TOTAL Balance in Reserve............. $ 87,240.08 =========== Ultimately, the arbitrator (1) permitted Dawson to retain the balance in the reserve, i.e., $87,240.08, and (2) required UPW to pay Dawson an additional $25,074.00 for fees and expenses incurred and anticipated to be paid over the two-year contract period, i.e., from April 3, 2000 to March 31, 2002.