(978) 979-1223

ccobb@silverlakelegal.com

Silver Lake Legal

Construction, Insurance & Business Attorney Boston

Dim Hope of Arbitration Award Review – Excess of Authority = Lone Basis

A recent Massachusetts case confirms, again, that Court review of arbitration awards is begrudging and very limited.  Below is a  brief of  CONWAY v CLC BIO LLC 87 Mass App Ct 503 (2013)

FACTS
Employee disputed the amount of severance payments and claimed the company violated Massachusetts Wage Act . The employment agreement was subject to arbitration.
The arbitrator found payments were proper and not a violation of the Wage Act.

ISSUE
Did the arbitrator exceed her authority in not finding a violation of the Wage Act?

RULING
Arbitrator’s ruling stands.

REASONS
Arbitrator’s findings are binding even if erroneous. An error of law does not make a ruling beyond the arbitrator’s authority, in fact errors of law by arbitrators are unreviewable by Massachusetts Courts.

Judicial review is broader when the arbitrator’s authority comes from a statute. Judges leave it to arbitrators to interpret their authority for awards private contract arbitration.

Even though the Wage Act is a law for protecting the public, judges won’t review arbitration awards based on it because by Federal preemption, they are prohibited to

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Charles W. Cobb

Attorney at Law


ADDRESS

320 Nevada Street Ste 301,

Newton MA 02460

EMAIL

ccobb@silverlakelegal.com

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(978) 979-1223

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