What is the standard of review in a securities arbitration proceeding?

In a securities arbitration proceeding in California, the standard of review is determined by the terms of the arbitration agreement. Generally in California, the standard of review is known as the “manifest disregard” of the law standard. This means that the arbitrator must be aware of and aware of the legal principles applicable to the case and must apply those principles to the facts presented. If the arbitrator’s decision fails to consider the relevant law or makes findings that are in clear and deliberate contradiction of the law, then there is a “manifest disregard” of the law. If a court determines that the arbitrator’s decision was in manifest disregard of the law, then the court can intervene and set aside the arbitrator’s decision. The manifest disregard of the law standard serves as a check to ensure arbitrators do not exceed their authority and instead follow the law when making their decisions. The manifest disregard of the law standard does not, however, guarantee that the court will set aside the arbitrator’s decision if the decision is incorrect. Rather, the manifest disregard of the law standard sets a higher bar that requires the court to determine that the arbitrator’s decision was in deliberate disregard of the law.

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What is the standard of review in a securities arbitration proceeding?

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