Can an arbitrator award punitive damages?
The short answer to the question of whether an arbitrator can award punitive damages in Maine is that it depends on the specific situation. Generally speaking, in arbitration proceedings, the parties involved in a dispute agree to be bound by the decision of an arbitrator, and this decision is often considered to have the same force and effect as a court judgment. Therefore, in some situations, an arbitrator may be able to award punitive damages. The specific situation in which an arbitrator can award punitive damages in Maine is when the parties to the arbitration agreement have agreed in writing to allow for punitive damages to be potentially awarded. This agreement must be specifically stated in the arbitration agreement, and must be available for review by both parties during the arbitration proceedings. If both parties agree to this provision, then the arbitrator can award punitive damages to one or both of the parties according to the circumstances of the dispute. In other situations, however, an arbitrator cannot award punitive damages. This is because punitive damages are awarded as a punishment, and punishment is generally reserved for criminal proceedings which are outside of the scope of arbitration proceedings. Therefore, if the parties do not include in their arbitration agreement a provision allowing for the award of punitive damages, then the arbitrator will not be able to award them.
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