Legal Definitions - arbitrament and award

Arbitrament and award refers to a legal defense or plea used in court. It asserts that a specific dispute between parties has already been definitively resolved through a formal arbitration process. When this plea is raised, it asks the court to dismiss a new lawsuit because the matter has already been decided by an impartial arbitrator, and that decision (known as the "award") should be considered final and binding, preventing the parties from relitigating the same issues.

Here are some examples to illustrate this concept:

• Business Contract Dispute: Imagine two companies, "InnovateTech" and "GlobalSupply," had a disagreement over the quality of components supplied under a contract. Their contract included a clause requiring all disputes to be settled through binding arbitration. After a thorough arbitration hearing, the arbitrator issued an award stating that GlobalSupply owed InnovateTech $150,000 for defective parts. Later, GlobalSupply attempts to sue InnovateTech in court, claiming that InnovateTech actually breached the contract first. InnovateTech's lawyers would raise the defense of arbitrament and award, presenting the arbitrator's decision as proof that the core issues of the dispute have already been settled and cannot be re-litigated in court.

• Employment Termination Case: Sarah, an employee, was terminated from her position at "City Hospital." Her employment agreement stipulated that any disputes related to termination would be resolved through binding arbitration. An arbitrator heard evidence from both Sarah and City Hospital, ultimately ruling that the hospital had legitimate grounds for termination, denying Sarah's claim for wrongful dismissal. If Sarah then files a lawsuit in civil court, alleging wrongful dismissal based on the exact same facts and claims presented in arbitration, City Hospital's legal team would assert arbitrament and award. They would provide the arbitrator's decision as evidence that the issue has already been conclusively decided in the agreed-upon forum, preventing Sarah from pursuing the same claim again.

• Construction Defect Claim: A homeowner, Mr. Davies, discovered significant structural issues with a new addition built by "Reliable Builders LLC." Their construction contract included a mandatory arbitration clause for all disputes. An arbitrator reviewed expert reports, testimony, and evidence, ultimately issuing an award requiring Reliable Builders LLC to pay Mr. Davies $90,000 to cover the necessary repair costs. Months later, Mr. Davies decides the $90,000 wasn't sufficient and files a lawsuit against Reliable Builders LLC in court, seeking additional compensation for the same structural defects. Reliable Builders LLC would invoke arbitrament and award, arguing that the arbitrator's decision is final and binding, and Mr. Davies cannot pursue the same claim again in a different legal venue.