United States First Circuit

In this case, an arbitration panel awarded appellant Fenyk $600,000 in back pay based on a claim that he was unlawfully terminated from his job because he is an alcoholic. The district court vacated the award, concluding that the arbitrators lacked authority to grant that remedy because Fenyk brought no claims under the state law the arbitrators applied. Fennel now seeks reinstatement of the award. The district court's judgment is reversed, where: 1) this court's limited review of arbitral decisions requires it to uphold an award, regardless of its legal or factual correctness, if it draws its essence from the contract that underlies the arbitration proceeding, as it does here; and 2) although the arbitration decision may have been incorrect as a matter of law, it was not beyond the scope of the panel's authority.

Appellate Information

• Decided 03/11/2015
• Published 03/11/2015

Judges

• Lipez

Court

• United States First Circuit

Counsel