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<p class=MsoNormal>We all know that there are only limited statutory grounds to
vacate an arbitration award. Based on Hall Street Assocs. v. Mattel, Inc.,
128 S. Ct. 1396 (2008) and Frazier v. CitiFinancial Corp. 604 F.3d 1313
(11<sup>th</sup> Cir. 2010) it has been held that “manifest disregard of
the law” is no longer a basis for vacating an arbitration award.
Some other federal districts have receded from Hall Street, and recognize
manifest disregard of the law as a basis to vacate an award. Still others
have allowed an award to be vacated where the arbitrator failed to follow the
law, which requirement was in the agreement to arbitrate, as thereby exceeding
the arbitrator’s authority. <o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>The “in vogue” basis to vacate an arbitration
award for failure to follow the law (which <u>is not</u> itself a basis to
vacate) is that the arbitrator exceeded his/her authority (which <u>is</u> a
statutory basis for vacating an award). If the award is made that
does not draw its essence” from the contract the award may be in
excess of the arbitrator’s authority.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>An interesting new case that upheld vacating an arbitration award
where an employee was terminated for convenience, but the arbitrator awarded
the employee salary as if the employee were wrongfully terminated, is attached.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>The arbitrator exceeded his authority by making an award
that was not drawn from the essence of the contract. It looks like an
award that does not conform to the contract is vacatable as the arbitrator
exceeding his/her authority. <o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal>We lawyers and judges sure love working with the words.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><span style='font-size:14.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Larry R. Leiby, Esq.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:14.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'><br>
</span><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Fellow, College of Commercial Arbitrators<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Member, Leiby Alexander Brandt ADR Group, LLC<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Florida Supreme Court Certified Circuit Court Civil Mediator<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>National Academy of Distinguished Neutrals<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>International Mediation Institute Certified Mediator<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Florida Bar </span><span style='font-size:10.0pt;font-family:
"Arial Rounded MT Bold","sans-serif"'>Board Certified Construction Law Expert<b><o:p></o:p></b></span></p>
<p class=MsoNormal><span style='font-size:14.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'> <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>JAMS Global Engineering and Construction Group<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>600 Brickell Avenue, Suite 2600<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Miami, FL 33131<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Phone: 954.895.9198<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>Fax: 305.371.5288<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'>lleiby@jamsadr.com<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'><o:p> </o:p></span></p>
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</span><span style='font-size:12.0pt;font-family:"Arial Rounded MT Bold","sans-serif";
color:#0E1866'><o:p></o:p></span></p>
<p class=MsoNormal><o:p> </o:p></p>
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