State Law Does Not Authorize De Novo Review of Award, Judge Rules

WASHINGTON, D.C. - In confirming a $2.75 million arbitration award, a federal judge has narrowly construed a District of Columbia statute, ruling that it does not authorize de novo review of an arbitration award. Affinity Financial Corp., et al. v. AARP Financial Inc., No. 10-2055 (D. D.C.).

On July 1, Judge Ricardo M. Urbina of the U.S. District Court for the District of Columbia held that D.C. § 16-4223(b) merely recognizes that an arbitration award may be set aside if it manifestly disregards some clear expression of binding law or public policy.

Affinity Financial Corp. entered into a contract with …