In a summary order issued today in TiVo Inc. v. Goldwasser, the Second Circuit upheld the rejection of a manifest disregard of the law challenge. The Court lists the FAA grounds for vacatur and then states the circuit’s position that manifest disregard may be applied as “judicial gloss” on the statutory grounds. The order then devotes around six pages to a review of the petitioner’s legal arguments, finding none shows manifest disregard. The court, towards the end of the order, briefly addresses and rejects arguments that the panel deprived petitioner of a fair hearing and exceeded its power in considering the issue of the implied convent of good faith and fair dealing, which it is contended was not raised by the prevailing party in the arbitration. The court noted that the panel alluded to this issue when it listed issues for post-hearing briefing and that the implied covenant issue was within the scope of the main issue in dispute (whether royalty payments were due).
