New Study Shows That U.S. Courts Are Arbitration-Friendly


There is a misperception in the international community that U.S. Courts are more willing to overturn arbitration awards than is the case overseas.  Frequently cited by overseas representatives seeking to have a venue other than New York for the international arbitration is the “manifest disregard of the law’’ wording used by the U.S. Supreme Court in its 1953 decision in Wilko v Swan.

The New York City Bar’s International Commercial Disputes Committee recently reported that there was no real basis for this argument as several Circuit courts have held that manifest disregard of the law is no longer grounds to challenge an arbitration award, and the Second Circuit held that the manifest disregard standard has been applied in such rare instances of blatant flouting of the law as to make our standards comparable to those used by countries deemed arbitration-friendly.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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