Courts’ Ability to Modify Arbitration Decisions Weighed
During oral arguments yesterday, the U.S. Supreme Court considered whether the parties to an arbitration may agree in advance to allow judicial review of decisions based on errors of law.
The underlying dispute between Mattel Inc. and its prior landlord concerned which party should pay for an environmental cleanup on the site where the toy maker once operated a factory, the Associated Press reports.
The lawyer for Mattel argued the Federal Arbitration Act provides exclusive grounds on which courts can correct arbitration awards, Law.com reports. Lawyer Beth Brinkmann told the justices that her opponent is improperly trying to “graft on” to the law “any other ground that the parties agree to.”
The case is Hall Street Associates v. Mattel Inc. (case information posted on the SCOTUSblog WIKI). The U.S. Supreme Court has posted argument transcripts (PDF).
