A. Kershaw, P.C. v. Spangler

Case Type:
Business
Case Status:
Affirmed
Citation:
16-1483 (10th Circuit, Jul 10,2017) Not Published
Tag(s):
Ruling:
In determining a monetary damages award in an arbitration between two non-debtors, a court can value a capital account held by a debtor in bankruptcy since a money judgment based on that valuation does not require distribution of the debtor's assets. The same does not apply to intangible assets held by the debtor since they are not fungible.
Procedural context:
An arbitrator ruled in favor of the appellee awarding her monetary damages. Appellant moved to vacate the arbitration award in the District Court in Denver and appellee moved to confirm the award. The District Court confirmed the award and the matter was appealed to the 10th Circuit. In assessing the district court’s confirmation of the arbitration award, the 10th Circuit reviewed legal questions de novo and factual findings for clear error.
Facts:
Knowledge Strategy Solutions, LLC ("KSS") was a Missouri limited liability company with two members—the respective professional corporations of Shannon Spangler and Anne Kershaw. KSS provide consulting services regarding data, records and knowledge management, e-discovery and related matters. In the spring of 2014, Spangler’s health caused Spangler PC to seek to withdraw from KSS but the process was not amicable. Kershaw filed termination papers for KSS without informing Spangler and transferred all of KSS' assets to a New York LLC she created. Spangler sued Kershaw in Missouri state court and three of the counts were referred to arbitration.
Judge(s):
Matheson, Phillips, McHugh (Matheson)

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