Arbitrators Did Not Exceed Powers in Ordering Party to Post Prehearing Security, Ill. Federal Judge Rules

CHICAGO — An arbitration panel did not exceed its powers in ordering a party to post prehearing security because American Arbitration Association rules authorized the panel to take whatever interim measures it deemed necessary, including issuing an interim award.

On Aug. 24, Judge Harry D. Leinenweber of the U.S. District Court for the Northern District of Illinois explained that the 7th Circuit has that there are a wide range of remedies to successful arbitration and just because specific remedies have not been articulated in the parties’ agreement, that does not mean they are not available.

Zurch American Insurance Co. provided …