In a recent decision by the U.S. District Court for the Western District of North Carolina, Morgan Stanley’s attempt to overturn a $1.5 million arbitration award was dismissed, despite their claims that the arbitrator slept during significant portions of the hearings. U.S. District Judge Frank D. Whitney stated, “[T]his court must evaluate only whether the arbitrator did his job, not whether he did it well or whether the court agrees with his conclusions.”
The award, comprising over $500,000 in compensatory and punitive damages, along with $1 million in attorney fees, was granted to Charles Randall, a former Morgan Stanley employee. Randall had accused the company of age and gender discrimination. Morgan Stanley argued that the arbitrator’s alleged misconduct, which included sleeping during testimonies and displaying bias, warranted vacating the award. However, the judge ruled that these grievances did not justify overturning the arbitrator’s decision.
This ruling underscores the limited scope of judicial review in arbitration cases, focusing primarily on whether an arbitrator fulfilled their role, rather than their efficacy or the judge’s agreement with their outcomes. For more details, you can read the original article here.