Originally from Navigating Maritime Arbitration: The Experts Speak

Preview

Arbitrators have broad discretion and authority in the conduct of arbitration proceedings. Thus, arbitrators have been found to have wide discretion to admit or exclude evidence, to deny the broad discovery available in court proceedings, to refuse to issue subpoenas they do not deem necessary, to decide on the relevance, weight and credibility of evidence and witness testimony, and to rule summarily on the validity of the claim in arbitration. Arbitrators also have the authority to order pre-award security for claims, award punitive damages, or to strike contract provisions that are found to violate the laws of the United States. The decisions of arbitrators are rarely disturbed because of the judicial deference to arbitration—the review of an arbitration award is “extraordinarily narrow.” As the Supreme Court noted in Stolt-Nielsen S.A. v. AnimalFeeds Int’l Corp., “[i]t is not enough for petitioners to show that the panel committed an error – or even a serious error.” More is needed and a reviewing court will sustain an award if it can find any “colorable basis” for the arbitral decision.