Arbitration Award Payments

[pioneerman]

I lost an arbitration and owe the client $50,000. I know that if there were to file a judgement, the money I owe would accrue interest at 10%/year. They outlined a schedule for me to pay them off at $5,000/month at 8% interest. I never agreed to any interest nor signed any documents. However, I've been very diligent about paying them $8,000/month, thinking that if I'm eagerly paying them the money, they won't have to file a judgement nor will they be able to collect interest. Is there any state statute that allows interest on an arbitrator's award?

thx

[aaron]

You are stating that interest was not made part of the arbitration award, and you haven't signed anything which would commit you to the schedule or to paying interest (despite having received the schedule)?

[pioneerman]

correct. the award just simply states the amount due. the awardee gave me a schedule for payments based on 8% interest, but I never agreed to it, nor have I been making those payments, the payments I have been sending have exceeded their requested payments. It is my understanding that if they were to file a judgement, then the monies due would be subject to 10% interest per state law, but they haven't filed a judgement; and since they won't have to, due to my eagerness to pay it off, I hope I won't be subject to any interest.

??????

[Mr. Knowitall]

Consider sending them a clearly marked final payment of $2,000.00 for payment #7 (that's assuming payments one through six total $48,000.00, leaving a $2,000.00 balance), and put the ball in their court.

[pioneerman]

does state law have any interest on arbitration award payments?

[aaron]

Not that I can see. You can review them for yourself here.

[pioneerman]

Does this part of the code mean it is subject to interest like a judgement:

"1287.4. If an award is confirmed, judgment shall be entered in
conformity therewith. The judgment so entered has the same force and
effect as, and is subject to all the provisions of law relating to,
a judgment in a civil action of the same jurisdictional
classification; and it may be enforced like any other judgment of the
court in which it is entered, in an action of the same
jurisdictional classification."

????

[aaron]

No, it means that following an arbitration award which falls under the statute, a party can obtain a judgment in conformity with the arbitration award.

[pioneerman]

thankyou!!!!

[pioneerman]

The award was paid in less than one year from which it was due. However, the client just sent a letter stating they are entitled to interest under California Civil Code.

We proposed a payment plan of 12 payments at 4% interest before payments were made and they countered with 12 payments at 8% interest. No agreement was ever made, verbally nor in writing. I just started making the payments with good faith, hoping they would not file a judgment.

What will the judge say. I don't see this clearly outlined in the law. Does the California Civil Code state that award payments are subject to 10% interest?

Please help.

thx