Federal Court Questions Appropriateness Of Having Arbitrator Articulate Reasons For Award

In Stifel, Nicolaus & Co. v. Stern, a federal district court has been requested to vacate a FINRA arbitration award on the ground that an arbitration panel manifestly disregarded the law. The court, confronted with an award that did not state the panel’s reasons, has recognized that “because the panel did not provide an “explained decision” for its arbitration award, the Court does not currently have a viable method to conduct even a limited review of the merits of the decision.” Accordingly, the court has requested “that each party [state] its position on whether remand to the arbitration panel would be appropriate in these circumstances.”

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