Annulment of Arbitral Awards
ANNULMENT OF ARBITRAL AWARDS
Prepared for Genc Trnavci,
Law of International Arbitration
AUL 305
Prepared by Stefani Marjanović
Student at American University in BiH
January 5th, 2013
Table of Contents Introduction 1 Legal Grounds for Annulment 1 Why do Courts Review Arbitral Awards 4 Case Law 6 Conclusion 10 Appendix A 11 Appendix B 13 Appendix C 14 Works Cited 15
Introduction The Arbitral award is final and binding upon all the parties in the dispute. It may only be vacated or annulled by a court on the grounds provided in the Federal Arbitration Act (FAA), such as corruption, fraud or irregularity during the hearing, or exceeding the arbitrator’s power. Throughout this paper one will see how it works in practice, meaning how the court actually implements it. The paper will also include some interesting cases regarding the annulment of arbitral awards, so it can help the reader to better understand the topic. The most important this paper will also include all the rules that are regulating annulment of arbitral awards. It is very important to understand the rules, and then see how they are actually implemented in practice. That is the reason why this paper will include both, the rules and the cases. Since arbitration is very common nowadays, it is very important to understand its concept and annulment of arbitral award is just one small part of it. So, when the arbitral award is rendered it may be a subject to the annulment by the court in the country where it is rendered, upon the request of either party if it does not conform to due process of law, non – arbitrability of the subject matter of the dispute or conflicts with the public policy of the State. What is the purpose of annulment? The purpose of annulment is actually to make the award granted invalid before it is enforced in another jurisdiction against the losing party. (Kazutake)
Legal Grounds for Annulment The legal grounds for annulment are provided in Article
Prepared for Genc Trnavci,
Law of International Arbitration
AUL 305
Prepared by Stefani Marjanović
Student at American University in BiH
January 5th, 2013
Table of Contents Introduction 1 Legal Grounds for Annulment 1 Why do Courts Review Arbitral Awards 4 Case Law 6 Conclusion 10 Appendix A 11 Appendix B 13 Appendix C 14 Works Cited 15
Introduction The Arbitral award is final and binding upon all the parties in the dispute. It may only be vacated or annulled by a court on the grounds provided in the Federal Arbitration Act (FAA), such as corruption, fraud or irregularity during the hearing, or exceeding the arbitrator’s power. Throughout this paper one will see how it works in practice, meaning how the court actually implements it. The paper will also include some interesting cases regarding the annulment of arbitral awards, so it can help the reader to better understand the topic. The most important this paper will also include all the rules that are regulating annulment of arbitral awards. It is very important to understand the rules, and then see how they are actually implemented in practice. That is the reason why this paper will include both, the rules and the cases. Since arbitration is very common nowadays, it is very important to understand its concept and annulment of arbitral award is just one small part of it. So, when the arbitral award is rendered it may be a subject to the annulment by the court in the country where it is rendered, upon the request of either party if it does not conform to due process of law, non – arbitrability of the subject matter of the dispute or conflicts with the public policy of the State. What is the purpose of annulment? The purpose of annulment is actually to make the award granted invalid before it is enforced in another jurisdiction against the losing party. (Kazutake)
Legal Grounds for Annulment The legal grounds for annulment are provided in Article
Cited: Kazutake, Okuma. Confirmation, Annulment, Recognition and Enforcement of Arbitral Awards. 2005. 03 01 2013 <http://www.seinan-gu.ac.jp/jura/home04/pdf/3704/3704okuma.pdf>. Law, Find. US Code. 2013. 04 01 2013 <http://codes.lp.findlaw.com/uscode/9/1/10>. Park, William W. Why Courts Review Arbitral Awards. 2001. 04 01 2013 <http://www.williamwpark.com/documents/Why%20Courts%20Review%20Awards.pdf>. UNCITRAL. UNCITRAL Model Law on International Commercial Arbitration 1985 With amendments as adopted in 2006. 2008. 03 01 2013 <http://www.uncitral.org/pdf/english/texts/arbitration/ml-arb/07-86998_Ebook.pdf>. [ 6 ]. 107 F. Supp. 75（S.D.N.Y. 1952）, rev’d, 201 F.2d 439（2nd Cir.）, rev’d, 346 U.S. 427, 436 - 437（1953). [ 7 ]. 779 F.2d 891（2nd Cir. 1985） [ 8 ]