Federal Arbitration Act: Contract Cannot Expand Scope Of Judicial Review

A recent Supreme Court decision limiting the grounds available for modifying or vacating an arbitrator's award under the Federal Arbitration Act (FAA) may give pause to parties contemplating arbitration. The FAA provides for expedited judicial consideration of an arbitration award when a party moves for an order confirming, vacating or modifying the award. But this streamlined treatment comes at a cost. In a 6-3 decision, the Supreme Court resolved a split among the Courts of Appeal in holding that the grounds for judicial review of arbitration awards under the FAA are limited to those stated in §§10-11 of the FAA and cannot be expanded by contract. Hall Street Assoc. LLC v. Mattel, Inc., Case No. 06-989 (Supr. Ct., Mar. 25, 2008) (Souter, J.; Stevens, J.: Kennedy, J.; and Beyer, J., dissenting).