A.I.P. Home Video has decided to appeal an arbitration award given to two independent filmmakers over the distribution rights to the film “Neurotic Cabaret.”Independent filmmaker John Woodward and his wife, Tammy Stones, won a $ 102, 698 arbitration award May 29 against A.I.P. over distribution rights to the film “Neurotic Cabaret” (Daily Variety, June 1). Arbitrator Michael Franklin, working under the binding arbitration rules of the American Arbitration Assn., found that A.I.P. had fraudulently coerced Woodward into signing a distribution agreement for the homevideo distribution of the 1990 film. In addition to the award for compensatory damages and reimbursement of attorney’s fees, A.I.P. was ordered to reimburse Woodward all arbitration costs and return to Woodward all distribution rights to his film. Daniel Coleman, VP of legal and business affairs for A.I.P., said Thursday that the award was excessive and the company believes there are no damages. Coleman also said the parties who conducted the distribution negotiations with the Woodwards are no longer with the company.