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“4th Circ. Affirms Sanctity Of FINRA Arbitration,” Law 360

December 12, 2016
Cory E. Manning , Adam Hegler

In UBS v. Gary T. Padussis, No. 15-2148, (4th Cir., Nov. 22, 2016) the Fourth Circuit (1) upheld the strong presumption against disturbing arbitral awards and (2) affirmed the truism that rules are rules. This recent decision provides parties the comfort that if they agree to an arbitration provision, in this case a provision mandating arbitration under the FINRA’s set of rules, then they will receive the benefit of that agreement. Building on prior law upholding the sanctity of the arbitration process, arbitration agreements and arbitral awards, see, e.g., Howsam v. Dean Witter Reynolds Inc., 537 U.S. 79 (2002), the Fourth Circuit found that if parties plainly agree to a process, then they must abide by the rules and the result of that process. Subscribers to Law 360 can click here for the full article.