In an opinion released yesterday, the Seventh Circuit schooled appellant’s counsel first on the application of the New York Convention and Panama Convention, then on the high standard of review it applies to commercial arbitration awards, and finally expressed profound disappointment with the frequency of motions to vacate arbitration awards. “Attempts to obtain judicial review of an arbitrator’s decision undermine the integrity of the arbitral process.” Johnson Controls, Inc. v. Edman...
Continuing the recent trend in US Federal courts to push back against frivolous challenges to arbitration awards, the US 7th Circuit Court of Appeals yesterday reminded challengers about the “high risk of sanctions” against parties bringing judicial challenges to arbitration awards. The Court did not in fact award sanctions in the case. The Court did, however, give effect to a “cost-shifting” provision in the distributorship agreement at issue to compel the losing party to reimburse the successful...
