Supreme Court Limits Scope Of Arbitration Review

By Ronald C. Minkoff, Shareholder, Frankfurt Kurnit Klein & Selz

On March 25, 2008, the U.S. Supreme Court decided Hall Street Associates, LLC v. Mattel, Inc., Docket No. 06-989, 2008 WL 762537 (U.S. Supreme Court March 25, 2008) (hereafter, "Hall Street").  By ruling that parties to an arbitration agreement could not agree to expand the scope of District Court review of arbitration awards beyond what is permitted in Sections 9 and 10 of the Federal Arbitration Act (9 U.S.C. Sects. 9 and 10; hereafter, the "FAA"), the Court dramatically limited the ability of those who participate in arbitrations to ensure that the resulting awards comply with applicable law and the terms of the underlying contract.  Arguably, the decision could be read to go even further, raising questions about the very existence of the "manifest disregard of the law" standard of review -- the only standard available for