Replies to post #13836 on Cel Sci Corporation (CVM)

[sab63090]

PoppaB2: The reason people agree to arbitration is that it is less costly than using the court system (which is questionable and loaded with appeals, hence time). As I understand it, both parties agree to a 3rd party un-biased opinion, but are allowed to appeal the final decision if they find that it is not fair, ie a biased opinion. Such an appeal is supposed last short term or about 6 months or less. We need to wait for the decision first; but at least it won't be years as in our go slow court process.

[rwa3848]

Appeals

28. Can arbitration proceedings and awards be appealed or challenged in the local courts? What are the grounds and procedure? Can parties waive any rights of appeal or challenge to an award by agreement before the dispute arises (such as in the arbitral clause itself)?

https://content.next.westlaw.com/Document/I46606fd91c9011e38578f7ccc38dcbee/View/FullText.html?contextData=(sc.Default)&transitionType=Default&firstPage=true&bhcp=1

Rights of appeal/challenge
There is no right to appeal an arbitration award in the ordinary sense. Rather, an award can only be vacated based on the limited grounds set out in the FAA or CPLR (see below, Grounds and procedure).
Grounds and procedure
An award can be vacated where (section 10, FAA):
The award was procured by corruption, fraud, or undue means.
There was evident partiality or corruption in the arbitrators, or any of them.
Where the arbitrators were guilty of misconduct in refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence relevant and material to the dispute; or of any other misbehaviour by which the rights of any party have been prejudiced.
The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award on the subject matter submitted was not made.
Section 11 of the FAA adds several additional grounds for modifying or correcting an award. These are where:
There was an evident material miscalculation of figures or an evident material mistake in the description of any person, thing, or property referred to in the award.
The arbitrators have awarded on a matter not submitted to them, unless it is a matter not affecting the merits of the decision on the matter submitted.
The award is imperfect in matter of form not affecting the merits of the dispute.
The CPLR contains similar grounds for vacatur and modification.
In summary, to overturn an arbitral award rendered in the US, there must generally be some form of fatal procedural or due process violation, affecting the legitimacy of the proceedings or effectively preventing the parties from putting on their case.