Legal Definitions - no award

No award refers to a formal legal defense used by a party who is being asked to comply with a decision or judgment (known as an "award") that they claim was never properly or legally made. Essentially, it is a denial that a binding resolution, often from an arbitration or a similar dispute resolution process, actually exists or is valid.

Here are some examples illustrating this concept:

• Example 1: Challenging an Arbitration Decision

  A software development company and a client were involved in an arbitration process to resolve a dispute over project deliverables and payment. The client later attempts to sue the software company to enforce a document they claim is the arbitrator's final "award" for significant damages. The software company, however, files a "no award" defense, arguing that the arbitrator had only issued a preliminary opinion and never signed or formally delivered a final, binding decision before their term expired. They contend that the document the client is presenting is not a legally enforceable award.

  This illustrates "no award" because the software company is denying that a legally recognized and enforceable arbitration award was ever finalized, thus challenging the very basis for the client's enforcement action.

• Example 2: Disputing a Claims Panel Ruling

  Following a large-scale product recall, a special independent claims panel was established to assess consumer claims for compensation. A consumer later tries to sue the manufacturer to enforce a specific payout amount, presenting a letter from an individual panel member as an "award." The manufacturer uses a "no award" defense, asserting that the letter was merely an initial communication, not a final, binding decision from the full panel, and that the formal, multi-step process for issuing official awards was never completed for that particular claim.

  Here, the manufacturer is arguing that the document the consumer is trying to enforce does not constitute a valid, final "award" from the claims panel, meaning there is no binding decision for a court to enforce.

• Example 3: Denying a Mediated Settlement as an Award

  Two former business partners participated in mediation to resolve the division of their company's assets and liabilities. One partner later files a lawsuit seeking to enforce what they describe as a "mediated award" for a specific distribution of funds. The other partner responds with a "no award" defense, stating that while extensive discussions occurred during mediation, no formal, signed settlement agreement was ever reached and ratified by both parties, and the mediator never issued a binding decision. They argue that the mediation process concluded without a definitive, enforceable resolution that could be considered an "award."

  This example demonstrates "no award" because the defense asserts that despite the mediation process, no final, binding agreement or decision (which could be considered an "award" in this context) was ever formally established, meaning there's nothing for the court to enforce.