Originally from:

Journal of American Arbitration (JAA) - Vol. 5, No. 2

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ARTICLES

The Struggle of Punitive Damages in
Arbitration: How to Get What You Want
Out of an Arbitration Agreement
By Sarah L. Rubright

I. INTRODUCTION
Arbitration is a matter of contract and arbitration agreements are
generally interpreted in the same manner as ordinary contracts—
therefore, these agreements must be enforced according to their terms in
order to effectuate the intentions of the parties.1 The parties must enter
into a contract with an enforceable arbitration clause, and the language of
the clause will determine the scope of which disputes may be arbitrated.2
In submitting a matter into the arbitration process, a party seeks a method
by which to resolve his differences separately from the judicial power of
the state.3 This resolution is often times attained faster, less expensively,
and less formally than it would be in a typical court proceeding.4
A. Federal Policy Favoring Arbitration
There is a strong federal policy that supports the enforcement of
arbitration agreements,5 and, under that policy, an arbitration award must
be enforced unless vacated pursuant to one of a limited number of
statutorily or judicially recognized grounds.6 The Federal Arbitration Act
(FAA) permits vacating an arbitration award if (1) the award was
obtained through corruption, fraud, or undue means; (2) there was
apparent partiality or corruption among the arbitrators; (3) the arbitrators
were guilty of wrongdoings or any other misconduct by which the rights