Kayser Case Analysis
Dixon Gao
Professor J. Steflik
BL&S 111
1 December 2016
Appealing Arbitration The American legal system is a complex system with many moving parts. Without the guidance of lawyers, many citizens are left thoroughly confused by the complexities of the court. The court, in both common law and civil law, act as the central means for dispute resolution. The Constitution of the United States of America gives Congress the power to set forth new federal laws, or statutes. With all the many statutes and precedents set in convoluted legal jargon, it is advisable to get professional legal advice, when dealing with matters of the law. With matters, such as personal jurisdiction, subject matter jurisdiction, and proper venue, a case that is improperly …show more content…
Plaintiff Roadway Package System, Inc. (RPS) ships small packages for corporate clients. “Independent linehaul contractors,” such as Defendant Scott Kayser, assist in its operations. RPS terminated Kayser's contract in 1998, alleging that he had failed to fulfill his obligations under the Linehaul Contractor Operating Agreement (LCOA), which governed their association. Kayser exercised his contractual right to demand arbitration and was awarded substantial damages. RPS then brought suit in the District Court for the Eastern District of Pennsylvania, asking the court to vacate the award. Applying the vacatur standards set forth in the Federal Arbitration Act (FAA), the District Court granted the motion on the grounds that the arbitrator exceeded the scope of his authority. We will affirm. (Roadway Package Sys. Inc. v. Kayser, 257 F.3d 287, 300-01 (3d Cir. …show more content…
This includes the Manifest Disregard Standard and is generally upheld in most courts. The standard upheld in the case Wilko V. Swan, established that the court can overturn an arbitration award if it showed a “manifest disregard for the law”. Arbitration cannot be used in the case because it is considered part of the first statutory grounds. An award that is obtained through corruption, fraud, or undue means is invalid and can be overturned. This manifest disregard for the law is currently a controversial topic and the Supreme Court has chosen not to resolve this issue at this time.
However, the federal circuits have adopted the manifest-disregard standard, as have most of the states. This manifest-disregard review is extremely narrow. The arbitrators cannot simply misunderstand the law or misapply it, they must be clearly aware of a well-established law, and still choose to disregard it. Motions to vacate based on this standard are rarely successful and most motions purely based on this one argument fail to be
Professor J. Steflik
BL&S 111
1 December 2016
Appealing Arbitration The American legal system is a complex system with many moving parts. Without the guidance of lawyers, many citizens are left thoroughly confused by the complexities of the court. The court, in both common law and civil law, act as the central means for dispute resolution. The Constitution of the United States of America gives Congress the power to set forth new federal laws, or statutes. With all the many statutes and precedents set in convoluted legal jargon, it is advisable to get professional legal advice, when dealing with matters of the law. With matters, such as personal jurisdiction, subject matter jurisdiction, and proper venue, a case that is improperly …show more content…
Plaintiff Roadway Package System, Inc. (RPS) ships small packages for corporate clients. “Independent linehaul contractors,” such as Defendant Scott Kayser, assist in its operations. RPS terminated Kayser's contract in 1998, alleging that he had failed to fulfill his obligations under the Linehaul Contractor Operating Agreement (LCOA), which governed their association. Kayser exercised his contractual right to demand arbitration and was awarded substantial damages. RPS then brought suit in the District Court for the Eastern District of Pennsylvania, asking the court to vacate the award. Applying the vacatur standards set forth in the Federal Arbitration Act (FAA), the District Court granted the motion on the grounds that the arbitrator exceeded the scope of his authority. We will affirm. (Roadway Package Sys. Inc. v. Kayser, 257 F.3d 287, 300-01 (3d Cir. …show more content…
This includes the Manifest Disregard Standard and is generally upheld in most courts. The standard upheld in the case Wilko V. Swan, established that the court can overturn an arbitration award if it showed a “manifest disregard for the law”. Arbitration cannot be used in the case because it is considered part of the first statutory grounds. An award that is obtained through corruption, fraud, or undue means is invalid and can be overturned. This manifest disregard for the law is currently a controversial topic and the Supreme Court has chosen not to resolve this issue at this time.
However, the federal circuits have adopted the manifest-disregard standard, as have most of the states. This manifest-disregard review is extremely narrow. The arbitrators cannot simply misunderstand the law or misapply it, they must be clearly aware of a well-established law, and still choose to disregard it. Motions to vacate based on this standard are rarely successful and most motions purely based on this one argument fail to be