Thursday, March 27, 2008

What You Need To Know Today (About Arbitration)

According to a new Supreme Court case, Hall Street Associates v. Mattel, an employer cannot build a "standard of review" into its arbitration agreements under federal law. Rather, the arbitration award must be reviewed under the very narrow final and binding standard set forth in the Federal Arbitration Act. This Supreme Court decision may effect the validity of arbitration agreements in California and other states. Among other things, some states require "meaningful" judicial review of arbitration awards as a condition to enforcing a pre-dispute, adhesive employment arbitration agreement. If such review is not possible, whither the arbitration agreement?

An analysis of the opinion is here.

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