Felix Felicis, LLC v. Riva Ridge Owners Ass'n
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The Supreme Court affirmed the judgment of the district court denying Felix Felicis, LLC's (Felix) application to vacate an arbitrator award in favor of Riva Ridge Owners Association (RROA) in this dispute over annual assessments, holding that the district court did not err in denying the application.
This litigation arose after RROA's site committee rejected Felix's plans to build a home on its tract in the Riva Ridge subdivision. The attorney fees and costs RROA incurred during the litigation RROA ratably levied upon all tract owners in the subdivision via annual assessments. Felix refused to pay a portion of them based on its belief that RROA was not authorized by the restrictive covenants to assess attorney fees and costs against the tract owners. Felix later submitted its dispute with RROA to binding arbitration. The arbitrator granted summary judgment for RROA and awarded it a total of $334,890. Felix moved to vacate the arbitration award on the grounds that the arbitrator exceeded his powers by failing to consider Felix's affirmative defenses. The district court denied the application. The Supreme Court affirmed, holding that Felix failed to show by clear and convincing evidence that the arbitrator made a manifest mistake of the law in granting summary judgment for RROA.
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