U.S. Supreme Court
This decision will affect the attractiveness of arbitration as an alternative to litigation. The Federal Arbitration Act generally allows only very narrow judicial review of arbitrator awards. In this case the parties agreed to allow for more expansive judicial review of the arbitrator's decision, but the 9th Circuit did not allow that. Lower courts are split on this question. Most companies prefer to have a standard-of-review clause in arbitration agreements that permits courts to 'fix' clearly erroneous awards. NFIB supports a party's right to contract for expanded judicial review.
Status: PENDING. Amicus brief filed in support of Hall Street July 27, 2007.
