Are there limits to the award that can be made by an arbitrator?

Yes, there are limits to the award that can be made by an arbitrator in Georgia. These limits are set by the Georgia Code of Civil Procedure, the Georgia Arbitration Code, and the arbitration agreement between both parties. Under the code, the arbitrator assigned to the situation must issue a written decision that includes the findings and the basis for the award made. If the award requires the payment of money, then the amount of the award must not exceed the amount of the claim and must be within the scope of the arbitration agreement. Additionally, the award cannot include an injunction or order that would go beyond the rights of the parties set out in the arbitration agreement. For example, the arbitrator cannot order one party to pay more than the amount claimed in the arbitration agreement. The granting of the award also must be reasonable and take into account the Georgia Arbitration Code’s rules. Lastly, the award may take the form of an interest arbitration where either party has the right to compel the other to accept a particular interest rate. This arbitration is typically done in labor disputes.

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