How binding is a securities arbitration decision?

The binding nature of a securities arbitration decision depends on the law in the state where the decision was made. In North Carolina, securities arbitration decisions are considered binding on parties who have agreed to be bound in writing. This means that if both parties agreed to be bound to the outcome of the arbitration, then they must comply with the decisions made by the arbitrator. Typically, the decisions that are rendered by the arbitrators involve decisions about financial matters such as the allocation of damages and other forms of compensation. If the parties refuse to follow the terms of the arbitration decision, then the court may enforce the decision through a court order. The decisions of the arbitrators may be appealed if either party believes the decision was not fair or was not based on the facts or law. The court may overturn the arbitrator’s decision if the court believes it was based on an error of law or was not supported by facts. In short, a securities arbitration decision is binding if the parties agree to be bound, and it can be appealed if one of the parties believes the decision was not fair. However, the court must still abide by the decision unless it finds an error of law or other issue that would make the decision invalid.

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