Arbitration is a form of alternative dispute resolution (ADR) that provides parties with a private and confidential way to resolve disputes. Once an arbitration decision has been made, the parties may wonder whether they have any recourse to challenge the decision or pursue further legal action. In this article, we will explore the post-arbitration dilemma and answer the question: can you still sue after arbitration?
The Finality of Arbitration Decisions
One of the key features of arbitration is the finality of the decision. Once an arbitration decision has been made, it is generally final and binding on the parties. This means that the parties cannot appeal the decision or challenge it in court, unless there are limited circumstances in which the decision can be challenged.
Grounds for Challenging an Arbitration Decision
- Procedural Irregularity
One ground for challenging an arbitration decision is if there was a procedural irregularity during the arbitration process. This could include a failure to follow the agreed-upon procedures, a failure to disclose information that would have been relevant to the outcome, or a bias on the part of the arbitrator(s). If any of these irregularities occurred, the party may be able to challenge the decision in court.
- Lack of Jurisdiction
Another ground for challenging an arbitration decision is if the arbitrator(s) did not have jurisdiction over the dispute. This could happen if the dispute fell outside of the scope of the arbitration agreement or if the parties did not agree to arbitrate the dispute in the first place. If this is the case, the party may be able to challenge the decision in court.
- Public Policy
A final ground for challenging an arbitration decision is if the decision is contrary to public policy. This could occur if the decision violates a fundamental principle of law or if the arbitrator(s) acted in a way that was clearly against public policy. If this is the case, the party may be able to challenge the decision in court.
Suing After Arbitration
If the arbitration decision is final and binding, can a party still sue? The answer is generally no, unless there are limited circumstances in which a party can challenge the decision. However, there may be other ways to pursue legal action, depending on the specific circumstances of the case.
- Breach of the Arbitration Agreement
If one party breaches the arbitration agreement, the other party may be able to pursue legal action to enforce the agreement. This could involve filing a motion to compel arbitration or seeking an injunction to prevent the other party from pursuing legal action outside of arbitration.
- Enforcement of the Arbitration Award
If the arbitration decision resulted in an award of damages, the winning party can seek to enforce the award in court. This involves filing a petition to confirm the arbitration award and obtaining a court order requiring the losing party to pay the damages.
- Other Legal Action
In some cases, a party may be able to pursue legal action outside of arbitration if the dispute falls outside of the scope of the arbitration agreement. For example, if the dispute involves a violation of a federal law, such as employment discrimination, the party may be able to file a lawsuit in federal court.
Conclusion
Arbitration is a popular form of alternative dispute resolution that provides parties with a private and confidential way to resolve disputes. Once an arbitration decision has been made, it is generally final and binding on the parties, and there are limited circumstances in which the decision can be challenged. While a party may not be able to sue after arbitration, there may be other ways to pursue legal action, depending on the specific circumstances of the case. It is important to consult with an experienced attorney to determine the best course of action after an arbitration decision has been made.