Award Reversed: Credibility Finding Was Evidence of Bias/Misconduct

Parties choose arbitration because it promises to be faster and cheaper than court. One of the reasons it is faster and cheaper is the limited review of the award. A trial court judgment can be overturned based on erroneous fact finding, errors of law, or procedural issues, including improperly allowing or disallowing evidence. An arbitration award can be overturned only for the limited grounds stated in the Federal Arbitration Act (FAA) or applicable state arbitration acts. Erroneous fact finding, errors of law, and improper treatment of evidence is not among them. Instead, the focus is on whether the decision was fairly made. Thus, the grounds to vacate an arbitration award include matters such as corruption, fraud, partiality, and misconduct or incompetence.