Is it possible to challenge a securities arbitration award in a court of law?

Yes, it is possible to challenge a securities arbitration award in a court of law in California. This is done through a judicial review of the award, a process that aims to establish that the award was legally correct. Such a review can be conducted when an aggrieved party files a petition in the local court to have the award vacated, modified, or corrected. A court’s review is limited to the following four grounds: (1) the award was procured by corruption, fraud, or undue means; (2) there was evident partiality or corruption in the arbitrators; (3) the arbitrators exceeded their powers; and (4) the award is ambiguous and in need of clarification. If a court finds that an award should be vacated, modified, or corrected, it will order the arbitrator to modify the award and issue a new one. Furthermore, the court may require that the participants to the arbitration to bear the costs of the proceedings. The challenge of an arbitration award must be made within a fragile period of time as specified by the law. In California, a petition for judicial review must be filed within ninety days from the date on which the party received the award. If the ninety-day period has passed, a court may still grant a late petition if it can be proven that there was a good cause for the delay.

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