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Is There an Appeals Process for Arbitration?

February 5, 2015 by Sage Sepahi

Arbitration is a form of alternative dispute resolution that is commonly used in business transactions and for consumer complaints. Many contracts contain arbitration clauses that require disputes be submitted to binding arbitration. When an arbitrator hears a case and makes a decision on the issues, that decision is final unless the decision is appealed. Arbitration is very different from mediation, which is usually voluntary and which relies on the parties with the disagreement to resolve their own issues. arbitration appeals process

A San Diego arbitration lawyer can help you to understand the appeals process for arbitration. Contact Sepahi Law Group, APC for help throughout the arbitration process and for assistance with appealing a decision that the arbitrator has made.

Understanding the Appeals Process for Arbitration

If you are not happy with a decision that was made by an arbitrator, you can contest the decision in court. The Federal Arbitration Act, as well as state laws, govern the appeals process for arbitration.

Some arbitration agreements require that an appellate arbitration panel review decisions when they have been contested by one of the parties to arbitration. However, even when this requirement exists, the decision made can still be appealed to the court if there are questions about whether the outcome was a fair and appropriate one.

The grounds for appealing a decision by an arbitrator are very limited. While you can take your case to court, the court is not going to substitute its own decision for the arbitrator’s ruling.  In order for the arbitration decision to be overturned, you would need to make an argument that either:

  • The agreement to arbitrate the dispute is unfair or unconscionable.
  • The manner in which the arbitration took place was unconscionable or unfair.

Arbitration agreements are unconscionable if they are unreasonable in favoring the drafter.  The court can carefully review the agreement and the process of arbitration in order to determine if all parties were treated fairly and if the process was appropriate. If the agreement or process of arbitration was clearly biased or benefited the interests of one party over the other, then the appeals process for arbitration may be successful.

The court can strike portions of arbitration agreements that it finds to be unfair, which may include some or all of the agreement. The court can also void or vacate the decision made by the arbitrator if it determines that the agreement or arbitration process were not fair to all parties. As part of the appeals process for arbitration, the court could release the parties from the agreement and allow the issue to be litigated instead of being decided in arbitration.

Binding arbitration is only effective if there are limited grounds on which agreements or decisions can be challenged. Parties to arbitration need to have some closure and certainty that the decision made by the arbitrator is a final one. This is why the appeals process for arbitration is limited.

A San Diego arbitration lawyer can help you to understand the appeals process for arbitration and assist in making a compelling argument to the court if you become involved in an arbitration appeal. Call today to speak with Sepahi Law Group, APC to learn more.

About Sage Sepahi

Sage Sepahi provides business litigation, class action litigation, employment litigation, real estate litigation, civil right litigation, commercial litigation, corporate formation, business dissolution, and arbitration/mediation services to residents of San Diego city and county, La Jolla, and Del Mar.

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Testimonials

  • Business Client

    I appreciate the friendliness and the prompt response I would receive from him. I would definitely recommend Mr. Sepahi he is very knowledgeable in what he does and I wouldn't hesitate to use his service again. I had a really good experience working with him.

  • Daniel

    I am also an attorney in San Diego. I needed a business law attorney to assist me with a very complex matter. As I have been an attorney in family law for 9 years, I did not even know where to start in looking for a business attorney. I was informed about Sage Sepahi who had an excellent representation in Northern California. I was a bit nervous about using someone new to San Diego, but I couldn't have been happier. I got a six figure settlement and am very pleased. He knows business law like the back of his hand and was great. I would never use anybody else and find he was extremely professional and always returned calls and emails.

  • Steve

    I hired Sage a couple years ago to step into a case that my previous lawyers had managed to screw up. From the moment Sage took over my case things changed. He understood the complex issues I was dealing with created an effective strategy that allowed us to prevail on every significant aspect of the case. I hired Sage during a very stressful time in my life and it was one of the best decisions I ever made. Being a business owner for the past 25 years, I have dealt with many attorneys who view you as a quick and easy way to make a buck. Sage is the exact opposite of this- highly ethical and trustworthy. I can't thank Sage enough and he will be the first person I call when another issue presents itself.

  • BT

    Sage has represented me in a variety of legal matters including business disputes, transactional matters and employee conflicts. Sage is a great communicator and his ability to prevent legal problems before they arise. He is among the best attorneys I have worked with. I highly recommend Sage.

  • Matthew

    Attorney Sage Sepahi is simply the best! Sage came highly recommended by one of my clients who was in a similar situation as I was with his business partners. He took on a tough case for me and I was very happy with the results. He goes out of his way to ensure you are kept up-to-date on the status of your case to the end. I would definitely recommend Sage if you are looking for a honest, efficient and knowledgeable attorney. Thank you Sage!

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All Rights Reserved.

Mailing address:
P.O. Box 2608
Del Mar, CA 92014
+1 858. 465. 9206

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