Are there any grounds for setting aside a securities arbitration award?

Yes, there are grounds for setting aside a securities arbitration award in Washington. Generally, a court may set aside an award on the grounds of fraud, misconduct, or violation of public policy. In the case of fraud, the arbitration award must have been procured by the fraudulent acts or misrepresentations of the party seeking enforcement, or of the arbitrator. If misconduct is alleged, the court will look to whether the arbitrator failed to observe the agreement of the parties, misconducted in the proceedings, or exceeded their authority. Lastly, if there is an allegation of a violation of public policy, the court may consider whether there is a clear mandate or public policy that should preclude the award. It should also be noted that the courts in Washington will only set aside an arbitration award if there is a substantial legal basis for doing so. The law in Washington, as well as the Federal Arbitration Act, establishes a strongly pro-enforcement policy, meaning that courts will generally uphold an arbitration award. If a party does not like the outcome of the award and wishes to have it set aside, they must be able to demonstrate that the award is unlawful or invalid. Even then, the court may reject the petition to set aside the award.

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