Do arbitrators have the authority to sanction a party or its counsel? As I explain below, they do if the arbitration clause — the source of any arbitrator’s authority — gives it to them.
Administered Arbitrations
Many domestic arbitration clauses provide for administered arbitration under the rules the American Arbitration Association, JAMS or the Institute for Conflict Prevention and Resolution, or CPR. In such cases, the rules of those organizations become a part of the contract, and each set of rules allows for sanctions.
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