Mid Atlantic Capital v. Bien, No. 18-1195 (10th Cir. 2020)Annotate this Case
A married couple, Beverly Bien and David Wellman, invested money with Mid Atlantic Capital Corporation (“Mid Atlantic”). Their investments performed poorly. Stung by the losses, Ms. Bien and Mr. Wellman initiated arbitration proceedings against Mid Atlantic. The arbitration panel awarded damages, fees and costs to the couple. The panel also ordered Ms. Bien and Mr. Wellman to reassign their ownership interests in their investments to Mid Atlantic. Mid Atlantic moved the federal district court to modify the arbitration award to correct “an evident material miscalculation of figures.” The district court denied the motion because the alleged error that Mid Atlantic sought to remedy did not appear on the face of the arbitration award. In the amended final judgment, in addition to ordering Mid Atlantic to pay Ms. Bien and Mr. Wellman certain damages, the court ordered that prejudgment interest would accrue on the damages portion of the award and that postjudgment interest would accrue at the federal rate specified in 28 U.S.C. 1961. Both parties appealed the district court’s order. Mid Atlantic specifically challenged the court’s denial of its motion to modify the arbitration award; the couple cross-appealed to challenge the court’s rulings with respect to prejudgment interest and the reassignment of distributions they received since the arbitration award due to their ownership interests in the investments. Finding no abuse of discretion or other reversible error, the Tenth Circuit affirmed the district court.