Originally from Dispute Resolution Journal

A recent California appellate decision and two recent federal appellate decisions have upheld the power of arbitrators to award punitive damages in commercial arbitration. These decisions depart from long-standing rules and expectations to the contrary.

All those concerned with arbitration should be aware of the possible impact of these cases on commercial arbitration. This article discusses the court cases on this point and poses some concerns as to the unsettling effect on arbitration that this dramatic turn in the law might well have.