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Taking Wrong Turn on Arbitration Award Reviews

Arbitration has long been used to resolve commercial disputes faster and more economically than would be possible in court. One of the principal factors contributing to that success is the finality, which derives from the limited judicial review that awards receive under current federal and state law. When awards are vacated for mere error of law or fact, that finality is lost, and arbitration becomes only the first round in protracted litigation. This is what has occurred in the recent case of Westerbeke Corp. v. Daihatsu Motor Co., 162 F. Supp. 2d 278 (S.D.N.Y. 2001).

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