Construction Law

Rules Established by the FAA for Vacating, Modifying, or Correcting Arbitration Awards Are the Exclusive Grounds for Modifying an Arbitration Award and Cannot be Modified by the Parties

By Ryan McCabe

    The case Hall Street Assocs., LLC v. Mattel, Inc., 128 S.Ct 1396 (2008), arose from a dispute concerning the responsibility for clean-up of a manufacturing site when excessive levels of pollutants were found in the property?s well water. The tenant, a toy manufacturer, and the property owner agreed to arbitration. The Arbitrator ruled in favor of the toy manufacturer. The arbitration agreement included provisions that specifically required a trial court to vacate, modify, or correct any award if the arbitrator?s conclusions of law were incorrect. The trial court rejected the arbitrator?s reasoning and vacated the award. The 9th Circuit Court of Appeals reversed. On appeal the Court was to decide whether the parties to arbitration could agree in advance to broad court review of arbitration awards. The Court held that the rules governing the FAA for vacating, modifying, or correcting awards were the exclusive grounds for modifying an arbitration award and could not be modified by the parties. 

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Full post as published by The South Carolina Construction Law Blog on July 06, 2008 (boomark / email).