Agreement to Expand Judicial Review of Arbitration Award Not Enforceable under FAA
It's Arbitration Day here at WCL.
The U.S. Supreme Court today issued its decision in Main Street LLC v. Mattel. The main issue in the case (previewed here) is whether the parties to an arbitration clause are free under the Federal Arbitration Act to provide for a broader scope of judicial review than is otherwise allowed in the FAA itself. For example, can the parties ask the court to review the award for an error of law by the arbitrator (something which would not ordinarily be allowed under the FAA)?
The Court said no -- once the FAA applies, its limited grounds for vacating an award are exclusive.