Can a securities arbitration award be overturned by a court?

Yes, a securities arbitration award can be overturned by a court in Virginia. When a dispute arises concerning securities, investors and brokers may choose to use securities arbitration as an alternative to litigation in a court. A securities arbitration is resolved by a neutral arbitrator, who is typically an attorney. However, the decision of the arbitrator is not always final. A party may be able to challenge the arbitration award in court. In Virginia, a court can overturn an arbitration award if it finds that the amount of the award is so excessive that it shocks the conscience of the court, or the arbitrator exceeded his or her authority in making the award. Additionally, the award may also be overturned if there is a showing of fraud or arbitrator bias. If a party is successful in having the arbitration award overturned, the litigation process may then proceed in a regular court. Ultimately, it is up to a court to decide if an arbitration award should be overturned or upheld. It is important to note that the court’s review of an arbitration award is limited in Virginia and the court will uphold the award unless it is determined that the award was issued in an unreasonable or irrational manner.

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