The procedural rules of the Financial Industry Regulatory Authority – which processed the demand for arbitration – permit the parties to request a reasoned award, but there was no evidence that the employee ever requested such an award. Without knowing the reasoning for the decision of the arbitration panel, the Court had no basis to evaluate whether the arbitration panel had disregarded the law.
Generally, the arbitration
panel is not required to explain its decision. Ibid.
In cases such as this one, where
neither statute nor arbitration proceedings demand or produce a detailed explanation
of how the arbitration panel reached its conclusion, we will not vacate an
award for failure to provide such an explanation. See
Green v. Ameritech Corp., 200 F.3d
967, 976 (6th Cir. 2000) (admonishing parties to an arbitration agreement to
“clearly state in the agreement the degree of specificity required” if they
wish for a detailed opinion at the end of the arbitration). As we have stated
time and again, the absence of a reasoned award makes it all but impossible to
determine whether the arbitration panel acted in manifest disregard of the law.
See,
e.g., Elec.
Data Sys. Corp. v. Donelson, 473 F.3d
684, 691 (6th Cir. 2007); Dawahare,
210 F.3d at 690; Jaros,
70 F.3d at 421.
NOTICE: This summary is designed merely to inform and alert you
of recent legal developments. It does not constitute legal advice and does not
apply to any particular situation because different facts could lead to
different results. Information here can change or be amended without notice.
Readers should not act upon this information without legal advice. If you have
any questions about anything you have read, you should consult with or retain
an employment attorney.
