Lawrence W. Newman has been a partner in the New York office of Baker & McKenzie since 1971, when, together with the late Professor Henry deVries, he founded the litigation department in that office. He is the author/editor of 4 works on international litigation/arbitration.
Michael Burrows, Formerly, Of Counsel, Baker & McKenzie, New York.
At a recent seminar on international arbitration at which one of the authors spoke, a panelist observed that one of the advantages of arbitrating in his country compared to the United States is that there exists the potential that a U.S. court will vacate an arbitral award if it believed that the arbitrator did not properly apply the law.
The fact that there is such a perception by foreign lawyers makes it worthwhile to look at the reality of the application by U.S. courts of the “manifest disregard of the law” standard for vacating arbitral awards. Such a look is warranted further by recent decisions in which two circuit courts seem to have gone in opposite directions in applying the standard.