Georgia Court of Appeals Reverses Confirmation of Arbitration Award Finding Arbitrator Ignored Contractual Language

Carlton Fields
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Carlton Fields

Interstate National Dealer Services, Inc. (“INDS”) challenged an arbitration award pursuant to OCGA § 9-9-13(b)(3), alleging the arbitrators overstepped their authority, and (5) the arbitrator’s manifest disregard of the law. Here, the arbitrator’s award found that respondent drafted the insurance agreements at issue with explicit authorization to recover certain fees, namely, “warranty claims” and “fees associated with contracts written.” INDS argued that the award ignored the fact the contracts expressly required the parties to utilize pricing structures set out by INDS in the Rate Card. The Court concluded that by rejecting the Rate Card, the arbitrator manifestly disregarded the law. The trial court’s ruling affirming the arbitration award was reversed on appeal.

Adventure Motorsports Reinsurance, Ltd. v. Interstate National Dealer Services Inc., A20A0036 & A20A0037 (Ga. Ct. App. June 25, 2020)

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