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ACCA Applied Skills · Corporate and Business Law (Global) · Alternative dispute resolution mechanisms

Estrada Ltd and Fowler Co agreed to arbitrate. Estrada Ltd is unhappy with the arbitrator's final award on the facts and wants to appeal on the ground that the arbitrator misjudged the evidence. Which statement best reflects the general position on challenging arbitral awards?

Arbitral awards are generally final and can be challenged only on limited grounds such as serious irregularity or lack of jurisdiction. Mere disagreement with the arbitrator's assessment of the evidence is not a ground, though challenge is not impossible in all cases.

  1. AAwards are generally final and may be challenged only on limited grounds such as serious irregularity or lack of jurisdiction, not simple disagreement with the findingsCorrect
  2. BAny party may appeal an award to the court as of right on the facts
  3. CAn award can be challenged only if the losing party pays the other side's costs first
  4. DAn award is never open to challenge in any circumstances

Explanation

Finality is a key feature of arbitration. Courts intervene only on limited grounds such as serious irregularity, lack of jurisdiction or public policy. Disagreement with how the arbitrator weighed the evidence is not enough, but it is wrong to say awards can never be challenged.

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