LD 1218
pg. 78
Page 77 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 79 of 94
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LR 468
Item 1

 
petition for vacatur, thereby robbing commercial arbitration of
its finality and making the process more complicated, time
consuming and expensive. Arbitrators would be effectively
obliged to provide detailed conclusions of law and if the
parties agree to judicial review for errors of fact, findings of
fact in order to facilitate review. In order to lay the
predicate for the appeal of unfavorable awards, transcripts
would become the norm and counsel would be required to expend
substantial time and energy making sure the record would support
an appeal. Finally, the time until resolution in many cases
would be greatly lengthened, and the prospect of proceedings
being reopened on remand following judicial review would
increase.

 
At its core, arbitration is supposed to be an alternative to
litigation in a court of law, not a prelude to it. It can be
argued that parties unwilling to accept the risk of binding
awards because of an inherent mistrust of the process and
arbitrators are best off contracting for advisory arbitration
or foregoing arbitration entirely and relying instead on
traditional litigation.

 
The third argument raised in opposition to an opt-in provision
is the prospect of a backlash of sorts from the courts. The
courts have blessed arbitration as an acceptable alternative
to traditional litigation, characterizing it as an exercise in
freedom of contract that has created a significant collateral
benefit of making civil court dockets more manageable. They
are not likely to view with favor parties exercising the
freedom of contract to gut the finality of the arbitration
process and throw disputes back into the courts for decision.
It is maintained that courts faced with that prospect may well
lose their recently acquired enthusiasm for commercial
arbitration.

 
2. In addition to the policy differences noted above, the
Drafting Committee was also concerned with the current
diversity of opinion as to the legal propriety of the "opt-in"
device reflected in the developing case law.

 
The first concern with the opt-in mechanisms providing for
judicial review of challenged arbitration awards is the
specter of FAA preemption. The Supreme Court has made clear
its belief that the FAA preempts conflicting state arbitration
law. Neither FAA Section 10(a) nor the federal common law
developed by the U.S. Courts of Appeal permit vacatur for
errors of law. Consequently, there is a legitimate question of
federal preemption concerning the validity of a state law
provision sanctioning vacatur for errors of law when the FAA
does not
permit it.


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