Originally from Investment Treaty Arbitration and International Law - Volume 18

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INTRODUCTION

Arbitration is a means of securing “prompt, economical and adequate solution of controversies.”  Towards this end, the United States Arbitration Act or the Federal Arbitration Act (“FAA”) establishes by statute the desirability of arbitration as an alternative to the complications of litigation  and endorses narrow and limited judicial intervention in the setting aside of arbitral awards. 

The United Kingdom on the other hand is one of the few countries which permit judicial supervision of arbitration on the merits of the dispute. 
Part I examines “manifest disregard of law” as a standard for vacatur. Chapter I examines the policy considerations for vacatur in United States. Chapter II examines the origins of “manifest disregard of law” and its application by the Supreme Court and the Circuit Courts, while considering the various criticisms of manifest disregard, both in terms of its uncertainty and in terms of its application. While there may exist some uncertainty in terms of where manifest disregard of law fits within the scheme of §10 of the FAA, such uncertainty does not extend to its applicability. 

Part II examines the United Kingdom’s “appeal on point of law” standard of review under §69 of the Arbitration Act, 1996. Chapter I examines the policy considerations behind enacting this standard. Chapter II examines the elements and threshold for judicial review in relation to an appeal on the point of law. 

Part III argues that “manifest disregard of law” is a better standard for setting aside, as its application ensures the least judicial interference, thus honouring the bargain of the parties.