March 15, 2021 Articles

Sanctions May Be Awarded for Unfounded Motions to Vacate Arbitration Awards

Arbitral awards will be vacated only in the four circumstances listed in section 10 of the Federal Arbitration Act. Motions to vacate that do not satisfy these criteria could be subject to sanctions.

By Sunu M. Pillai

Courts review arbitration awards under a narrow standard that is highly deferential. Notwithstanding this, parties often try to vacate unfavorable arbitration awards. In one such recent case, Hill v. CAG2 of Tuscaloosa, LLC, No. 7:19-cv-02044-LSC (N.D. Ala. June 15, 2020), the U.S. District Court for the Northern District of Alabama sanctioned the defendants for filing a groundless motion to vacate. 

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