ARBITRAL FINALITY: THE CURRENT INTERPRETATION OF THE PUBLIC POLICY EXCEPTION

KATHLEEN L. PERELES
EDWARD A. PERELES


DOI: 10.2190/65KY-LBDH-QNB4-B4YG

Abstract

Since the decisions in the Trilogy cases were handed down by the Supreme Court on June 23, 1960, the dominant policy of the courts has been to defer to the decision of the arbitrator and uphold the arbitration award. However, there have always been reasons for judicial review of arbitration rewards; and, in some cases, reasons to vacate or overturn an award. This article focuses on the interpretation and status of a rationale often used by the courts when overturning or vacating an arbitration award: the public policy exception. We present the current interpretation of the public policy exception in the unionized segment of the private sector and the historical evolution of the exception, and we focus on strategies for both parties (employers and unions) to either use or defend against the public policy exception.

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