For the first time, parties in a dispute before the American Arbitration Association (AAA) can opt for built-in appellate review of arbitral awards. But reception to the new AAA appellate rules, which became effective on Nov. 1, has been mixed among Texas litigators.
The AAA’s optional appellate rules can only be used when there is an agreement between the parties, and the rules only allow parties to appeal based on errors of law and clearly erroneous determinations of fact. The AAA appellate panel consists of former federal and state judges, as well as neutrals with appellate experience. The AAA anticipates the appellate panel can rule within three months.
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