On December 14, 2021, the Georgia Supreme Court reversed the lower court, held that the arbitrator did not manifest a disregard for the law, and confirmed the arbitration award. The court held that in order to disregard the law, an arbitrator has to know the law and intentionally disregard it, not simply make a legal error. Adventure Motorsports Reinsurance, Ltd. v. Interstate Nat'l Dealer Svcs., 313 Ga. 19, 867 S.E.2d 115 (2021).
Interstate National Dealer Services, Inc. (Interstate) was in the business of selling and servicing motorsports vehicles. It retained Southern Mountain Adventures, LLC, (Southern) to prepare its service contracts and sell them to customers. Interstate reinsured its service contracts with Adventure Motorsports Reinsurance, Ltd. (Reinsurer). To pay for this reinsurance, Interstate charged an additional administrative fee to Southern. Although the purpose of this additional fee was to cover the cost of the reinsurance, Interstate kept a portion of these additional fees for itself. A dispute arose about this practice, and the parties proceeded to arbitration in accordance with their agreement.