Arbitration is in the news. Not just a buried paragraph in the business section, but the front page. (A three-arbitrator panel issued a 34-page arbitration award finding Major League Baseball was justified in suspending baseball player Alex Rodriguez for 162 games, which A-Rod is now trying to vacate.) My own hope is that this high-profile
manifest disregard
The Next Frontier of Arbitration Litigation: Lessons From State Courts
After reading more than 40 decisions about arbitration from state high courts, issued just in the past eight months, I have two bits of wisdom to share. First, that is not the best way to spend your summer vacation, even for a devoted arbitration nerd. And second, there are arbitration issues percolating in state courts…
SCOTUS Affirms Arbitrator's Decision To Allow Class Arbitration in Sutter
The U.S. Supreme Court issued its decision in Sutter today, unanimously holding that as long as the arbitrator bases a decision to allow or disallow class arbitration on the text of the parties’ agreement, her “construction holds, however good, bad, or ugly.” Oxford Health Plans LLC v. Sutter, 569 U.S. ___ (June 10, 2013). The …
Seventh Circuit Is Sick Of Arbitration Appeals; Threatens "High Risk of Sanctions"
In an opinion released yesterday, the Seventh Circuit schooled appellant’s counsel first on the application of the New York Convention and Panama Convention, then on the high standard of review it applies to commercial arbitration awards, and finally expressed profound disappointment with the frequency of motions to vacate arbitration awards. “Attempts to obtain judicial review…
Arbitration Award Can Be Vacated If It Directs Party To Perform Illegal Act
In a new decision from the First Circuit, which refuses to make any definitive pronouncements about the law on vacating arbitration awards, the court said it assumes “with some confidence” that if an arbitration award directed a party to violate an administrative agency rule, it could be vacated on that basis.
In Bangor Gas Company…
“Manifest Disregard Of The Law” Has Circuit Courts in Disarray
The Fourth Circuit recently affirmed that it will consider “manifest disregard of the law” as a separate basis for attacking an arbitration award, in addition to the four bases set forth in Section 10 of the Federal Arbitration Act. Wachovia Secs., LLC v. Brand, __ F.3d ___, 2012 WL 507022, at *8 (4th Cir. Feb…