Arbitration Appeal Procedures

Arbitration Appeal Procedures

Arbitration appeal procedures refer to the processes by which a party can challenge or contest an arbitration award. Generally, arbitration is designed to be a final and binding resolution of disputes, and the grounds for appeal are very limited compared to traditional court proceedings.

Under the Federal Arbitration Act (FAA) and many state arbitration statutes, the grounds for appealing an arbitration award typically include:

1. Fraud or Corruption: Evidence that the arbitration process was tainted by fraudulent activities or corruption can serve as a basis for appeal.

2. Evident Partiality: If an arbitrator is shown to have a bias or a conflict of interest that was not disclosed, a party may appeal the decision.

3. Misconduct: Actions by the arbitrator, such as refusing to hear pertinent evidence or engaging in misconduct that prejudices a party’s rights, can justify appealing the ruling.

4. Exceeding Powers: If the arbitrator exceeds their authority by making a decision outside the scope of what the parties agreed to in their arbitration agreement, this can be grounds for appeal.

To initiate an appeal, a party must typically file a motion in the relevant court within a specified period, often within three months of the arbitration award. The court will then review the record of the arbitration proceedings, but it will not typically re-evaluate evidence or re-try the case.

For example, if a party believes that the arbitrator failed to consider key evidence that could have changed the outcome of the case due to misconduct, they may seek to appeal the arbitration award on that basis. However, successful appeals are rare, as courts usually uphold the arbitrator’s decision unless clear misconduct or a violation of due process is demonstrated.