Grounds for Reviewing Arbitration Awards under Arbitration Law
Certainly! Here's a clear and concise explanation of the Grounds for Reviewing Arbitration Awards under Arbitration Law:
⚖️ Grounds for Reviewing (or Vacating) Arbitration Awards
Under Arbitration Law, courts give great deference to arbitration awards and will rarely interfere. However, under specific, limited grounds, a court may review, vacate, modify, or correct an arbitration award.
📚 Primary Legal Framework
In the U.S., the Federal Arbitration Act (FAA) governs most arbitration proceedings, especially those involving interstate commerce.
Relevant section: 9 U.S.C. §§ 10–11
❌ Grounds to Vacate an Arbitration Award (FAA § 10)
A court may vacate an award only in these limited situations:
Corruption, fraud, or undue means
– If the award was obtained through deceit.
Evident partiality or corruption in the arbitrators
– If an arbitrator has a clear conflict of interest and didn’t disclose it.
Misconduct by the arbitrator
– Such as refusing to postpone a hearing for valid reasons or refusing to hear relevant evidence.
Arbitrators exceeded their powers
– If the arbitrator ruled on issues not submitted to arbitration or went beyond their contractual authority.
🛠️ Grounds to Modify or Correct an Award (FAA § 11)
A court may modify or correct an award for:
Evident material miscalculation of figures
Evident material mistake in the description of a person, thing, or property.
Award issues beyond the scope of the arbitration agreement.
Formal defects (such as a clerical error) that don’t affect the merits.
🚫 What Is Not a Valid Ground for Review?
A mistake of fact or law by the arbitrator is not usually enough.
Courts do not review the merits of the case.
There is no appeal just because one party is unhappy with the outcome.
🧑⚖️ Judicial Attitude: Highly Deferential
Courts will enforce arbitration awards unless there is a clear and specific statutory basis for intervention.
⚖️ Summary Table
| Ground | Result | Statutory Basis |
|---|---|---|
| Fraud or Corruption | Vacate | FAA § 10(a)(1) |
| Evident Partiality | Vacate | FAA § 10(a)(2) |
| Arbitrator Misconduct | Vacate | FAA § 10(a)(3) |
| Exceeded Authority | Vacate | FAA § 10(a)(4) |
| Miscalculation or Mistake | Modify/Correct | FAA § 11 |
| Formal/Clerical Defect | Modify/Correct | FAA § 11 |
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