When may a party successfully appeal an arbitration award?
Arbitration is a popular alternative dispute resolution method, often chosen by parties to resolve commercial disputes outside of the court system. However, despite its many benefits, such as efficiency and confidentiality, parties may sometimes seek to appeal an arbitration award. This article explores the circumstances under which a party may successfully appeal an arbitration award.
Firstly, a party may successfully appeal an arbitration award if the award is found to be void or voidable. An arbitration award may be void if it was obtained through fraud, corruption, or if the arbitrator was under some form of duress. Similarly, an award may be voidable if it was procured through procedural irregularities, such as a failure to comply with the rules of the arbitration agreement or the applicable arbitration rules.
Secondly, a party may appeal an arbitration award if there was a serious procedural defect that affected the fairness of the proceedings. This could include issues such as the arbitrator being biased, the party not being given proper notice of the arbitration, or the arbitrator exceeding their powers. In such cases, the appeal court may set aside the award and order a new arbitration.
Thirdly, a party may successfully appeal an arbitration award if the award is inconsistent with public policy. Public policy concerns can arise when the arbitration award conflicts with the law of the seat of the arbitration, the law of the parties, or international treaties. In such cases, the appeal court may find the award to be against public policy and set it aside.
Lastly, a party may appeal an arbitration award if the arbitrator made a manifest error of law. This occurs when the arbitrator applies the law incorrectly or misinterprets the law. In such cases, the appeal court may review the decision and, if necessary, correct the error.
It is important to note that the ability to appeal an arbitration award is subject to the rules of the arbitration agreement and the applicable arbitration laws. Some arbitration agreements may restrict or eliminate the right to appeal, while others may provide for a limited right of appeal based on specific grounds.
In conclusion, a party may successfully appeal an arbitration award under various circumstances, including the award being void or voidable, serious procedural defects, inconsistency with public policy, or manifest error of law. However, the ability to appeal is subject to the rules of the arbitration agreement and the applicable arbitration laws. Parties should carefully consider these factors before deciding to appeal an arbitration award.
