The Award - Chapter 10 - Securities Arbitration: Practice and Forms - Second Edition

Arbitration decisions are made following the conclusion of the hearing or the final hearing session if multiple sessions are required. Although the decisions are based largely on equitable considerations and not strictly on principles of law, they are, as a practical matter, based on the pleadings, testimony, documents submitted by the parties, and both legal and factual arguments. The decisions may also take into account any particular industry practice or custom at issue and will necessarily reflect the arbitrators' individual conceptions of that practice or custom. Common sense, fairness, and an overall assessment of whether a party was wronged will also be important ingredients in the decision of an arbitration panel.

[1]—Requesting a Written Opinion

Not all of the above factors must be considered in every arbitration and some factors may be given greater weight than others. Since arbitrators are not required by law or FINRA to set forth the reasons for their decisions, it is often difficult to ascertain which items the arbitrators considered and how much weight they accorded to each. FINRA rules, however, currently require a written award, which must include the names of the parties, the names of counsel, a summary of the issues in controversy, a statement of any other issues resolved, the damages and other relief requested and awarded, the names and signatures of the arbitrators concurring in the decision, the number and dates of hearing sessions, the location of the hearings, and the date of the award. In addition, the arbitration agreement or an advance agreement between the parties and the arbitrators may require the preparation of a written opinion.