When Arbitrators Exceed their Authority Under the FAA

By: Brennan C. Morrissett

Arbitration awards are often described as ironclad, with arbitrators’ findings generally not susceptible to challenge.  Historically, and as a matter of public policy, arbitral power is intentionally limited to only those matters the parties have specifically contracted to subject to arbitration.  This means an arbitrator has no power to rule on issues except for those expressly assigned to them by contract by the parties.  Challenges to arbitrators’ failure to observe this fundamental limitation led to several recent United States Supreme Court “exceeded authority” cases – one of four limited bases on which an arbitrator’s finding can be challenged.  These rulings give some much needed

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