Anderson

Manu Melwani appeals the denial of his motion for attorney’s fees and his motion for reconsideration. We reverse.

BACKGROUND

Melwani ran a title insurance company in Guam. In 1990, he decided to launch a sister corporation in the Commonwealth of the Northern Mariana Islands. In January 1991, Melwani recruited Kim Fell Anderson to run the new business, which became known as Pacific American Title Guaranty & Escrow Co. (CNMI). Mel-wani and Anderson executed an employment agreement in which Melwani made a variety of covenants on behalf of himself and Pacific American Title, and Anderson agreed to manage the office. The agreement also included a non-compete clause and the following provisions: (1) in the event of a dispute, either party could seek arbitration, and (2) in the event of a lawsuit to “enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover reasonable attorney’s fees.”

In June 1997, Anderson was fired. A few months later, she formed her own title insurance company. Melwani believed that Anderson had appropriated Pacific American’s title record database for her new business, and he threatened to sue her if she did not return…