A federal judge’s recent decision to vacate an arbitration award has set up a crucial question for the 5th U.S. Circuit Court of Appeals: How far can an arbitrator go to resolve a dispute in a way not contemplated in a contract between parties?
Lynne Liberato, who represents the plaintiff in Timegate Studios Inc. v. Southpeak Interactive, et al., a vacatur proceeding, says the question is fundamental for the 5th Circuit because “if the vacatur isn’t affirmed, then virtually no vacatur can be affirmed.” Liberato and Timegate Studios co-counsel Mark Trachtenberg are partners in Haynes and Boone in Houston. [See the vacatur order.]
