Can a securities arbitration award be overturned by a court?

Yes, a securities arbitration award can be overturned by a court. When an investor or broker files a claim against another party in a securities arbitration, the dispute is ultimately decided by an arbitration panel. In West Virginia, the arbitration panel’s decision is then subject to judicial review. The court’s review of a securities arbitration award is typically limited to examining whether it was based on valid legal principles and whether it was issued by a qualified arbitrator. A court may also review whether the arbitration panel exceeded its authority in deciding the dispute. In West Virginia, a court may overturn a securities arbitration award if there is clear evidence that the award is based on an error of law or the facts underlying the dispute. However, courts are generally reluctant to overturn arbitration awards because the parties mutually agreed to submit to arbitration as part of their contract. As a result, courts usually give deference to the arbitration panel’s decision and will only overturn an award if it is clearly unjustified. If an investor or broker believes that their securities arbitration award has been unjustly overturned by a court, they may appeal the decision by filing a petition with the West Virginia Supreme Court.

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