Arbitrators Did Not Manifestly Disregard Federal Law, Judge Rules

SAN FRANCISCO - A California federal judge has confirmed an arbitration award rendered against a brokerage firm in a dispute over funds allegedly invested with convicted Ponzi schemer Bernard Madoff, ruling that the arbitrators did not manifestly disregard federal law. Stone & Youngberg LLC v. Kay Family Revocable Trust, No. 11-198 (N.D. Calif.).

"In short, the panel's determination in favor of the Trust does not constitute the panel's 'manifest disregard' of the federal authorities cited by respondent, but, rather, its application of that law to the facts, as it found them," Judge Maxine M. Chesney of the U.S. District Court …