Seventh Circuit Rules that ‘Manifest Disregard of the Law’ Is Not Independent Basis for Vacating Arbitral Awards


The Seventh Circuit held that “manifest disregard of the law” is not an independent ground for vacatur in a patent case under the Federal Arbitration Act (“FAA”). See Affymax, Inc. v. Ortho-McNeil-Janssen Pharmaceuticals, Inc. , No. 11-2070 (7th Cir. Oct. 3, 2011). Citing Hall Street Associates, L.L.C. v. Mattel, Inc., 552 U.S. 576 (2008), the court stated that the grounds to vacate arbitral awards listed in the FAA are “exclusive; neither judges nor contracting parties can expand [them]” and that “disregard of the law is not on the statutory list.” Read more about the doctrine of “manifest disregard of the law” in our previous posts.

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