Friday, August 24, 2007
Interesting Article About Supreme Court's Pending Decision In Hall Street Associates Concerning Whether The Standard Of Judicial Review Of Arbitration Awards Can Be Altered By Contract
In a August 23, 2007 article by Justin Kelly appearing in www.adrworld.com (free trial available)entitled "Supreme Court Urged to Allow for Expanded Review Under FAA", Mr. Kelly does a nice job of laying out the important legal issues that are involved in the pending U.S. Supreme Court case, Hall Street Associates v. Mattel, Inc., ___U.S. ___, No. 06-989, cert granted May 29, 2007.
In this case, the Supreme Court will decide whether the parties by contract can alter the standard of judicial review under the FAA. Stated another way, the Court will have to decide whether freedom of contract principles allow parties to change the statutory standard of judicial review.
Mr. Kelly interviewed me and quotes me as follows:
Mitchell H. Rubinstein, an adjunct professor at St. John's Law School and New York Law School, said the issue of expanded review is "very important to the arbitration field because ADR is being used more often" to resolve a wide range of disputes.
Rubinstein said that if you tinker with the limited judicial review scheme, arbitration could become "a first level court" instead of a final and binding process envisioned in the FAA.
I have previously wrote a law review article about a similar topic which addresses this issue under the FAA, Altering Judicial Review Of Labor Arbitration Awards, 2006 Mich. St. L. Rev. 235 (Summer)and also blogged about Hall Street Associates here.
Mitchell H. Rubinstein