The Eleventh Circuit joins the majority of circuits in finding grounds to vacate a non-domestic arbitration award under the FAA
Leslie A. Berkoff
by Leslie A. Berkoff
In Corporacion AIC, SA v. Hidroelectrica Santa Rita S.A., the US Eleventh Circuit Court of Appeals, sitting en banc, issued a decision overruling its own prior decision and recognised that the grounds for vacating an arbitration award under Chapter 1 of the Federal Arbitration Act (FAA) should also be applied to vacate a non-domestic arbitration award (awards rendered in the US involving a non-US based party). As a result of this decision, the Eleventh Circuit resolved a circuit split, joining the Second, Third, Fifth, Sixth, Seventh, Ninth, Tenth, and DC circuits – all of which have held that Section 10 of Chapter 1 of the FAA governs vacatur.
Section 10 of Chapter 1 of the FAA outlines four reasons for vacating an arbitral award:
The award was procured by corruption, fraud, or undue means;
There was evident partiality or corruption in the arbitrators;
The arbitrators were guilty of misconduct in the manner in which the hearing was conducted or evidence presented; or
The arbitrators exceeded their powers or imperfectly executed them so that a mutual, final, and definite award upon the subject matter submitted was not made.
The drastic change in the Circuit’s position will leave many reconsidering choices of an arbitral seat going forward.
GGI member firmMoritt Hock & Hamroff LLP Garden City (NY), New York (NY), USAT: +1 516 873 2000Law Firm Services
Moritt Hock & Hamroff LLP is a full-service commercial law firm providing a wide range of legal services to businesses, corporations, and individuals worldwide. The firm has 19 practice areas.
Leslie A. Berkoff is a Partner with Moritt Hock & Hamroff LLP and chair of its bankruptcy practice group. She concentrates her practice in the area of bankruptcy, representing a variety of corporate debtors, trustees, creditors, and creditors’ committees, both nationally and locally. Leslie is also Regional Chair North America of the GGI Debt Collection, Restructuring & Insolvency (DCRI) Practice Group. Contact Leslie.
