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Judge van Gestel rejected defendant’s
application (styled as a motion to dismiss) to vacate an
arbitration award. MassMutual claimed that the
underlying award violated public policy.
The court noted the strong public policy
in Massachusetts favoring arbitration as an alternative
to litigation, and the reluctance of courts to interfere
with an arbitration award. Indeed, “judicial review of
an arbitration award is among the narrowest known to
law.” Id. at *4. An arbitration award may only be
overturned for corruption, illegality, errors in
procedure, or conflict with public policy; the mere fact
that an arbitrator made an error of law or fact is not a
proper basis for vacating the award. Id.
Moreover, to meet the public policy exception, “the
public policy in question must be well defined and
dominant and must be ascertained by reference to laws
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and legal precedents and not from general
considerations of supposed public interests.”
Id. at *5.
While conceding that “many may be
appalled at the way America’s corporate executives are
compensated and at the lifestyles they assume are their
due,” the court found that no public policy had been
shown here that was sufficiently well-defined as to
justify vacating the arbitration award. Id. at *6.
The matter was simply “a private tug-of-war, over money,
created, facilitated and dominated by a contract between
participants in the scrum.” Id. Nor was there any
basis in the record to support defendant’s challenge to
the impartiality of one of the arbitrators – for the
arbitrator’s qualification were re-affirmed by the
American Arbitration Association, and the record
contained no indicia of partiality or bias.
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