Category: vacating arbitration awards
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Arbitrators “Exceeding Their Powers” Create Grounds to Vacate Awards
By Leslie King O’Neal When & How do Arbitrators Exceed Their Powers? Arbitrators “exceeding their powers” is grounds to vacate arbitration awards under the Federal Arbitration Act (“FAA”)[i] and state arbitration acts.[ii] How do arbitrators exceed their powers, making their awards subject to vacatur? Some recent cases give examples of what constitutes arbitrators “exceeding their…
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Canadian Court Annuls Arbitration Award for Arbitrator’s Improper AI Use
By Leslie King O’Neal Canadian Provincial Court Annuls Arbitration Award, Citing Improper AI Use For the first time, a court has vacated an arbitration award because the arbitrator used Generative AI without telling the parties and the award contained several hallucinations—non-existent cases, fake articles, non-existent arbitration awards.[i] These cited references were central to the Arbitrator’s…
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How Should Arbitrators Deal With “Excess Evidence” and “Unreliable Evidence?”
By Leslie King O’Neal Hinkes v. Sunera Technologies, Inc.–Is “Excess Evidence” Grounds to Vacate Award? Sarah Hinkes sued her employer, Sunera Technologies, and two employees for alleged discrimination that violated federal statutes.[i] The lawsuit was stayed pending arbitration. The arbitrator ruled in the employer’s favor and the trial court confirmed the award. Hinkes moved to…
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Is “Manifest Disregard of Facts” Grounds to Vacate Arbitration Award?
By Leslie King O’Neal 9th Circuit Says “Manifest Disregard of Facts” Can Be Grounds to Vacate Can a court vacate an arbitration award if the arbitrator manifestly disregards undisputed facts?” Simply reading FAA §10[i] would indicate “no” but a recent 9th Circuit opinion opens the door for this as grounds to vacate. Noting the FAA’s…
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Disclosures are Key in Appraisals or Arbitrations
By Leslie King O’Neal Is Appraiser Partiality Grounds to Vacate an Appraisal? The Burke Appraisal The Burke case was a lease dispute between a landlord and a tenant regarding rent adjustments based on the property’s fair market value. The lease provided that each side would select an appraiser and these appraisers would attempt to resolve…
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Reversing Prior Confirmation, Court Vacates Arbitration Award for Fraud
By Leslie King O’Neal Court Vacates Award for Perjured Testimony & Withheld Documents Vacating an arbitration award under the FAA is extremely difficult. It’s nearly impossible to vacate an arbitration award after a court confirms it in part. However, evidence of perjured testimony at arbitration and withheld documents led a federal judge to do just…
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Arbitration Award Upheld Despite Misnomer
By Leslie King O’Neal What’s in a Name? In arbitration, as in court, it’s important to name the parties accurately. However, in a recent case, the 6th Circuit upheld an award which incorrectly named the respondent. Finding the substance of the arbitration award governed over the caption’s form and that the respondent waived any objection…
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Can Courts Review “Interim” Arbitration Awards Under the FAA?
By Leslie King O’Neal Interim v. Final Awards—What’s the Difference? Arbitrators often issue “interim” awards regarding certain issues, such as liability, leaving damages claims or attorneys’ fees for later determination. Are these interim awards subject to motions to confirm or to vacate under FAA §§ 9 and 10? As discussed below, courts have generally held…
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