Originally from:

Journal of American Arbitration (JAA) - Vol. 3, No. 1

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ARTICLES

Over-Preemption of State Vacatur Law: State
Courts and the FAA
By Jill I. Gross

I. INTRODUCTION
Several recent decisions in state courts vacating multi-million dollar
arbitration awards have garnered significant attention from the media due
to the size of the award vacated.1 A subsidiary issue, however, has
escaped attention: the courts’ inconsistent use of the preemption
doctrine2 under the Federal Arbitration Act (FAA)3 to preempt state
statutory grounds governing motions to vacate. The FAA preemption
doctrine provides that the federal substantive law of arbitrability4
preempts conflicting state laws in federal and state court.5 For example,
in Sawtelle v. Waddell & Reed, Inc.,6 a panel in New York’s Appellate
Division, First Department vacated a $25 million punitive damages