• Goins Aaron, PLC of New Orleans

A & G Attorneys Get Arbitration Award Vacated

November 3, 2025 | Blog

In Carver Theater, LLC et al vs Kristen Melancon et al the Civil District Court for the Parish of Orleans was misled into referring the case for Arbitration before a panel of three Arbitrators.   At the conclusion of the Arbitration which ended with an Award in favor of the Defendants, the Plaintiffs moved the Arbitrators to vacate their Award based on testimony given during the Arbitration by the defendant Kristen Melancon that she never intended to honor the contract at issue which contained an allegedly valid clause requiring arbitration of any disputes involving the contract.   The Plaintiffs’ request to vacate the Arbitrators’ Award was denied by the Arbitrators and the Plaintiffs sought similar relief from the Civil District Court.   After a contradictory hearing the Civil District Court granted the Plaintiffs’ Motion to Vacate the Arbitration Award finding that the matter would not have been referred for Arbitration absent the misrepresentations made to the Court by the Defendants and their counsel.

The Defendants timely appealed the ruling of the Civil District Court to the Louisiana Fourth Circuit Court of Appeal.   After oral argument the Court of Appeal affirmed the Civil District Court’s vacating of the Arbitration Award by a vote of 2-1 aptly noting:

“The district court granted the Theater’s  motion, brought under La. R. S. 9:4210(A), citing Appellants’ conduct.   The district court explained in open court, that it “vacat[ed] the arbitration award based on the fact that there was a misrepresentation to this Court that the agreement underneath it had a valid arbitration clause as well as every other tenet.”   As the district court pointed out, the case “would not have been in front of the (arbitration) panel but for the representation to this Court that there was an arbitration clause that was valid in a contract.”   We agree with the district court’s reasoning, and we find that Appellants procured the arbitration award through undue means under La. R. S. 9:4210(A).”

 In explaining its finding of  “undue means” the Court of Appeals went on to note:

“We find that the Appellants engaged in undue means by undertaking inconsistent positions and unfair forum shopping to obtain a favorable arbitration award.   In seeking an exception of prematurity and a stay pending arbitration, Appellants’ express position was that the MOU was valid and mandated arbitration.  At no point in that proceeding did Appellants merely argue that the arbitration alone was severable and valid, even if the underlying MOU was invalid or ineffective.   Nevertheless, at arbitration, Appellants argued for the first time that the MOU was ineffective and Melancon testified that she had no intention of abiding by its terms.”

In an effort to get a reversal of the Court of Appeal’s decision the Defendants sought review via a writ application to the Louisiana Supreme Court.  After briefing by both sides the Louisiana Supreme Court on September 17, 2025 by a vote of 5-2 denied the Defendants’ writ application returning the case to the District Court for discovery and trial by jury.

A shout out to A&G shareholders, Dominic Gianna, Bill Aaron and DeWayne Williams for their creative and aggressive efforts in getting the Arbitration Award vacated and persuading the Fourth Circuit Court of Appeal and the Louisiana Supreme Court to allow that decision to stand.

 

 

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