FAA's Narrow Standard Of Review Cannot Be Expanded, High Court Rules

WASHINGTON, D.C. - The U.S. Supreme Court has ruled 6-3 that the Federal Arbitration Act precludes federal courts from enforcing contractual agreements that provide for more expansive judicial review of an arbitration award than the narrow standard of review provided for in the FAA. Hall Street Associates Inc. v. Mattel Inc., No. 06-989 (U.S. Sup.).

In a March 25 opinion the majority agreed with the 9th Circuit U.S. Court of Appeals that Sections 10 and 11 of the FAA provide the exclusive grounds for expedited vacatur and modification of arbitration awards.

The majority was led by Justice David H. …