Whether to require a “reasoned” award is a decision parties must consider when setting out the rules under which an arbitration will be conducted.

Typically, arbitrators simply issue an award and provide no explanation of the basis for the decision. Parties often favor this as it assures that decisions will be issued speedily and with finality. Such finality is generally assured as the Federal Arbitration Act at Section 10, and virtually all state arbitration acts, require that courts confirm such awards while providing limited grounds upon which they may be vacated. These grounds generally include obvious ones such as corruption, fraud, partiality, misconduct or other prejudicial misbehavior. In addition, confirmation is required unless the arbitrators exceeded or imperfectly executed their powers so that a mutual, final and definite award upon the subject matter was not made or did not comply with the terms of the parties’ agreement. Finally, many courts will refuse to confirm awards that were made in manifest disregard of the law.

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