In re Arbitration between Hawaii State Teachers Association and State of Hawaii, Department of Education. ICA Opinion, filed 11/26/2013. Consolidated with No. CAAP-11-0000140.

OPINION OF THE COURT BY

NAKAYAMA, J.

I. INTRODUCTION

At issue is whether the doctrine of sovereign immunity protects the State from an arbitrator’s award of prejudgment interest. We hold that, under the facts of this ease, it does not. Because judicial review of an arbitration award is confined to the strictest possible limits, and because the arbitrator in this case reasonably interpreted the arbitration agreement in fashioning the award, we hold that the arbitrator did not exceed his authority in awarding prejudgment interest against the State. We also hold that the award of attorneys’ fees…