M.K. Weeden Construction, Inc. v. Simbeck & Assocs., Inc.

The Supreme Court reversed the order of the district court vacating an interim award and final award issued by the arbitrator and requiring the parties to resubmit their dispute to arbitration before a new arbitrator, holding that the district court erred.

M.K. Weeden Construction, Inc. and Simbeck and Associates, Inc. entered into a subcontract for Simbell to install a geosynthetic lining system on the slopes of a new embankment on a tailings storage facility at a mine near Nye, Montana. After Weeden terminated the subcontract by invoking the subcontract's default provision Simbeck filed a demand for arbitration. The arbitrator first issued an interim award awarding Simbeck damages and then a final award awarding Simbeck attorney fees. The district court granted Weeden's motion to vacate the award and ordered the parties again to submit the dispute to arbitration before a new arbitrator, ruling that the arbitrator exceeded his authority by issuing the interim award. The Supreme Court reversed, holding (1) the interim award was a proper "reasoned award" and the district court abused its discretion by vacating it; and (2) Simbeck was entitled to attorney fees incurred in defense of the arbitration award.