Bowles Financial Group v. Stifel, Nicolaus & Co.

22 F.3d 1010 (1994)

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Bowles Financial Group v. Stifel, Nicolaus & Co.

United States Court of Appeals for the Tenth Circuit
22 F.3d 1010 (1994)

EP

Facts

Stifel, Nicolaus & Company, Inc. (Stifel) (defendant) disputed the amount it owed to Bowles Financial Group, Inc. (Bowles) (plaintiff). The parties arbitrated pursuant to agreement. During the arbitration, the attorney representing Bowles communicated Stifel’s prior settlement offer to the arbitrators multiple times. The attorney used the settlement offer to argue that Stifel admitted liability, did not pay, and was engaged in a plan to deceive Bowles. The arbitrators indicated that they would not consider the offer in rendering their decision. The arbitrators issued an award in favor of Bowles for more than the settlement offer. Stifel filed in district court, seeking to vacate the award. Stifel argued that introduction of the settlement offer was improper and that if settlement offers were allowed, no party would choose to settle knowing that an offer would be disclosed in arbitration. Bowles’s attorney argued that the arbitrators were not bound by the rules of evidence and that he owed his clients a duty to communicate the offer to the arbitrators. The district court found that the arbitration was fair and upheld the award. Stifel appealed.

Rule of Law

Issue

Holding and Reasoning (Brorby, J.)

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