Court Opinion

ID: 9573777
Source: CourtListenerOpinion
Date Created: 2023-08-21 20:58:56.535913+00
Date Added: 2024-06-11T12:43:19.058781
License: Public Domain

*521HEARN, C.J.
I concur but write separately to explain why I believe the decision by the arbitrator not to award attorney fees to the prevailing party was mere error and not manifest disregard of the law. Although vacating arbitration awards should not be taken lightly, manifest disregard of the law is established when the arbitrator recognizes the law and refuses to apply it. In South Carolina, the best definition of when this ground applies comes from this court’s opinion in Harris v. Bennett, 332 S.C. 238, 246, 503 S.E.2d 782, 787 (Ct.App.1998), stating:
We cannot say the arbitrators appreciated the existence of a clearly governing legal principle and decided to ignore it. See, e.g., Marshall v. Green Giant Co., 942 F.2d 539 (8th Cir.1991) (“manifest disregard of the law” which allows court to intrude upon arbitrator’s decision exists when arbitrator commits error that was obvious and capable of being instantly perceived by average person qualified to be an arbitrator; “disregard” implies the arbitrator appreciates the existence of a clearly governing legal principle, but decides to ignore or pay no attention to it).
Under our statutory scheme, the award of fees to the prevailing party in a mechanic’s lien action is automatic and mandatory. S.C.Code Ann. §§ 29-5-10 & 20 (1991 & Supp. 2001); T.W. Morton Builders, Inc. v. von Buedingen, 316 S.C. 388, 402-03, 450 S.E.2d 87, 95 (Ct.App.1994). Under the statute as amended in 1999, the method of determining the prevailing party reads in part: “If the defendant makes no written offer of settlement, the value of his counterclaim is considered to be his negative offer of settlement. If the defendant has not asserted a counterclaim, his offer of settlement is considered to be zero.” S.C.Code Ann. § 29-5-10(b) (Supp.2001) (emphasis added). However, the previous version of section 29-5-10 did not apply if neither party made a written settlement offer. See Seckinger v. Vessel Excalibur, 326 S.C. 382, 391, 483 S.E.2d 775, 779 (Ct.App.1997) (holding that if no written offers are made, section 29-5-10 does not apply and prevailing party, if any, is determined as a discretionary matter for the trial judge). In this case, the arbitrator found that no written offer was made by either side and believed the case was subject to the pre-amendment statute.
*522Under the 1999 amendment, I believe it would be manifest disregard of the law for an arbitrator to refuse to award attorney fees to the prevailing party. In this case, although I think the arbitrator erred in applying the old law, he did so under the theory that this action was filed before the 1999 amendment. Under the older version of the statute, the arbitrator had' the discretion whether or not to award fees because neither side made a written settlement offer. Accordingly, I would hold the arbitrator’s order falls into the mere error category and should have been confirmed by the circuit court. See Trident Technical Coll. v. Lucas & Stubbs, Ltd., 286 S.C. 98, 108, 333 S.E.2d 781, 787 (1985) (“[T]he case law presupposes something beyond a mere error in construing or applying the law.”).