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NY Courts Should Revisit Criteria For Vacating Arbitral Awards - Law360


From Law360: Expert Analysis - Opinion
By David N. Cinotti, Pashman Stein Walder Hayden

Based on dicta in a 1953 U.S. Supreme Court opinion in Wilko v. Swan, federal courts have held that an arbitrator’s manifest disregard of the law is a basis to vacate an arbitral award under Section 10 of the Federal Arbitration Act.

Although the U.S. Supreme Court appeared to call into question the manifest-disregard doctrine in Hall Street Associates LLC v. Mattel Inc., [1] the U.S. Court of Appeals for the Second Circuit subsequently held that it remains a narrow basis to vacate awards as a judicial gloss on the express annulment grounds found in Section 10. For the time being, therefore, manifest disregard of the law is a potential ground to vacate in New York federal courts. But what about in New York state courts?

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