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Coady v. Ashcraft & Gerel

Arbitrators exceeded authority in employment dispute between law firm and former attorney by making factual findings regarding compensation owed where arbitration clause limited to questions of ambiguity or interpretation of contract.

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The full case caption appears at the end of this opinion.

LYNCH, Circuit Judge. The parting of ways of attorneys in a law firm is often difficult; in this instance it has been unusually acrimonious. In this dispute between Edward Paul Coady, an attorney, and Ashcraft & Gerel, his former law firm, the firm appeals the district court’s confirmation of an arbitration award. The core of this case concerns the award to Coady of $45,000 in additional bonus compensation, plus fees and expenses for the arbitration. Ashcraft & Gerel argues that the arbitrators exceeded their authority under the limited arbitration clause of Coady’s employment agreement. Ashcraft & Gerel also appeals the district court’s earlier refusal to transfer Coady’s application for arbitration to the federal district court for the District of Columbia, where the law firm had earlier filed a complaint alleging, inter alia, that Coady was in breach of his contract. Coady later counterclaimed in the D.C. court for breach of contract. [FOOTNOTE 2]

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