Commercial Litigation and Arbitration

Limited Scope of Fraud and Mistake as Grounds to Overturn Arbitration Award

Taylor v. Univ. of Phoenix/Apollo Group, 2012 U.S. App. LEXIS 18865 (5th Cir. Sept. 7, 2012):

Taylor contends that the award should be vacated because it was procured by fraud. "The statute does not provide for vacatur in the event of any fraudulent conduct, but only 'where the award was procured by corruption, fraud, or undue means.'" Forsythe Int'l., S.A. v. Gibbs Oil Co. of Tex., 915 F.2d 1017, 1022 (5th Cir. 1990) (quoting 9 U.S. C. § 10(a)) (emphasis in opinion). Thus, there must be a "nexus between the alleged fraud and the basis for the [arbitrator's] decision." Id. ***

"An award may not be set aside for a mere mistake of fact or law." Apache Bohai Corp. LDC v. Texaco China, 480 F.3d 397, 401 (5th Cir. 2007).

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