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

In Florida, the standard of review in a securities arbitration proceeding is known as the “manifest disregard of law” standard. This standard requires that a party challenging an arbitration award must show that the arbitrator knew the law, recognized the law as applicable to the dispute, and intentionally declined to follow the law. This is a more stringent standard than the “abuse of discretion” standard, which requires that a party challenging an arbitration award must demonstrate that a reasonable person would find that the arbitrator’s actions were clearly wrong or unjust. A “manifest disregard of law” requires a party challenging an arbitration award to demonstrate a high level of proof of the arbitrator’s refusal to follow the law. Parties challenging arbitration awards must show that the arbitrator’s decision disregarded a relevant, applicable law and the failure was clear and unmistakable. It is not sufficient to demonstrate that the arbitrator merely erred or misapplied the law. The party must also establish that the error was so obvious and obviously disregarded, that it constituted a manifest disregard of the law. Ultimately, the “manifest disregard” standard places a high burden upon a person challenging the arbitration award. This is intended to protect the finality of arbitration awards and allows the arbitration process to continue. Therefore, it is important for parties involved in securities arbitration proceedings to understand the applicable standard of review.

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

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