Vacating of Arbitration Awards as Diminishment of Conflict Resolution

Abstract

The traditional perspective about arbitration has been that the award of the arbitrator is final and binding on all parties. Generally, arbitration has resolved the conflict. However, a trend has emerged in which the losing party seeks a court as a second forum for the resolution of the dispute in order to have the decision of the arbitrator vacated. This study analyzed 101 randomly selected cases out of a population of 573 cases in which vacatur of an arbitration award was sought. In approximately 30% of these cases, the arbitration award was in fact vacated. Case characteristics, applicable laws, legally based behaviors and arbitrator behaviors were analyzed to develop an understanding of the contexts in which arbitration awards are vacated. Implications for arbitrators and the advocates are suggested.