Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Corporate CounselorKickerFeaturesTopicsCommercial LawLitigationSectionsNewsLJN Newsletters

The Federal Arbitration Act

By John Wilkinson
July 31, 2008

The U.S. Supreme Court's recent decision in Hall Street Associates, L. L. C. v. Mattel, Inc. (Slip Opinion, No. 06-989) had long been anticipated by the litigation and arbitration communities and has been the subject of extensive commentary and debate in the brief period since it was rendered. The issue (which had created a sharp conflict in the Circuits) was whether the standards for judicial review of arbitration awards, as set forth in Sections 9-11 of the Federal Arbitration Act (FAA), could be contractually expanded by the arbitrating parties. More particularly, the question was whether parties could contract to inject traditional grounds for appeal into FAA arbitrations or whether they were limited to what was specifically set forth in Sections 9-11 of the FAA, e.g., 'evident partiality,' 'fraud,' 'corruption,' refusing to hear 'pertinent and material' evidence, and acts exceeding the powers of the arbitrator.

The Hall Street Court held that parties could not contractually expand the standards for judicial review in Sections 9-11 of the FAA. A likely, practical outgrowth of this ruling is that arbitrating parties will also be unable to contractually expand standards for judicial review under most if not all state arbitration statutes. This will make it more difficult for courts to overturn arbitration awards, and raises serious doubts about the continuing vitality of generally accepted decisions which hold that 'manifest disregard of the law' is a separate and distinct ground for challenging an arbitration award under the FAA.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.