Opinion ID: 712184
Heading Depth: 2
Heading Rank: 4

Heading: Post Arbitration Litigation

Text: 21 The Government of the Virgin Islands filed a motion to dismiss the arbitration award on December 7, 1994. App. 104. The government claimed that its agents had acted without statutory authority when they had signed the arbitration agreement. Furthermore, the government argued that the district court was without statutory jurisdiction under the Federal Arbitration Act (FAA) to confirm the arbitration award. App. 104-105. The trustees moved to confirm the arbitration award on February 13, 1995. 22 The district court denied the government's motion to dismiss and granted the trustees' motion to confirm the arbitration award in a memorandum opinion and order dated March 31, 1995. App. 161-167. According to the court, both the government and the trustees signed the arbitration agreement voluntarily. This in itself constituted an enforceable contract under the FAA, the court reasoned, which the court could enforce. Despite the government's obfuscation, the court noted, the proceeding was governed by the FAA, and the trustees could seek entry of judgment on the arbitration award. 23 Furthermore, the court noted that the joint stipulation stated that the government would abide by and perform any award rendered by the arbitrator. Even if the parties mistakenly referred to irrelevant statutes in the stipulation (which the government contended deprived the district court of jurisdiction), the court found that the parties' intention to arbitrate their dispute was clearly evidenced by the stipulation. The court therefore denied the government's motion to dismiss the arbitration award and granted the trustees' motion to confirm the arbitration award. App. 167. 24 Finally, the court also took issue with the government's written submissions in support of its motion to dismiss. According to the court, the government's brief did not contain one citation to precedent. Furthermore, the court noted that [c]onsidered as a whole, the Government's motion papers are inexcusably opaque and insufficiently supported by case law. App. 167. Accordingly, the court determined that the government would be sanctioned. The court ordered the Government to pay all costs and attorneys' fees associated with the motion. The Government was, however, given an opportunity to show cause why it had not violated Rule 11 of the Federal Rules of Civil Procedure by filing the motion. The Trustees were directed to file an affidavit of costs and attorney fees. App. 163-67. At the present time, the district court has not rendered its decision on the sanctions issue.