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Page 4 of 25 |
Can an arbitration award be overturned by a court? |
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In general, courts cannot overturn an arbitration Award because the arbitrator made a mistake of law or fact. Even if a court would have decided the case differently under existing law, the court will still enforce an arbitration Award that differs from what it would have decided. (This general rule may not apply where the parties have agreed to arbitrate a statutory claim, although the law in this areas is not well developed.)
Courts will "vacate" and refuse to confirm an arbitration Award where it is the product of fraud, corruption, or misconduct by the arbitrators. The grounds for vacating an Award are set out in the applicable statutes. In order to have an arbitration Award vacated, it is usually necessary to show (1) a serious conflict of interest on the part of a neutral arbitrator, (2) the Award was not "final" or (3) it covered a subject that was outside the scope of the arbitration agreement. |
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