Partial Arbitration Awards May Complicate Confirmation

Arbitration Award by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

Many insurance and reinsurance arbitrations are bifurcated. That is, the issues in dispute are decided in phases. When arbitrations are held in phases the arbitration panel may issue partial or interim awards for each phase.

Whether a partial or interim award may be confirmed by a court will depend on whether the award is a “final” award for purposes of the Federal Arbitration Act (“FAA”). Under Section 9 of the FAA, if the parties in their agreement have a agreed that a court judgment may be entered on an arbitration award, a party may seek confirmation of that award. Case law provides that the award must be final, meaning that the award is a final and complete disposition of all issues.

In a recent case before the Seventh Circuit Court of Appeals, the court addressed a request to confirm phased awards and whether confirmation of two phased awards was permissible.

Continue reading “Partial Arbitration Awards May Complicate Confirmation”