Opinion ID: 1880490
Heading Depth: 1
Heading Rank: 1

Heading: Whether the arbitrator's failure to give reasons for the award constituted a manifest disregard of the law.

Text: The written award of the arbitrator in this case provides: Based upon the testimony and documents presented at the hearing as well as the written arguments and briefs, the arbitrator concludes that [Christina] is entitled to an award against [H & S Homes]. The stand-alone arbitration agreement dated January 28, 2000, that Christina signed is silent as to whether the arbitrator has to make a written award or to give reasons for the award made. The arbitration provision in the retail installment contract also dated January 28, 2000, and signed by Christina is ambiguous. It provides that [t]he Commercial Rules of the American Arbitration Association (`AAA') also shall apply. Rule 55 of the Commercial Rules of the AAA provides: Any award shall be in writing and signed by a majority of the arbitrators.... The arbitrator need not render a reasoned award unless the parties request such an award in writing prior to appointment of the arbitrator or unless the arbitrator determines that a reasoned award is appropriate. [2] (Emphasis added.) Attached to Christina's brief to this Court is A Guide for Commercial Arbitrators issued by the AAA. On page 11, the following appears: Commercial arbitrators are not required to explain the reasons for their decisions. As a general rule, the award consists of a brief direction to the parties on a single sheet of paper. One reason for brevity is that written opinions might open avenues for attack on the award by the losing party. Courts will not review arbitrator's decisions of the merits of the case, even where the conclusions are different from those that a court might reach. But a carelessly expressed thought in a written opinion could afford an opportunity to delay enforcement of the award. The obligations to the parties are better fulfilled when the award leaves no room for attack.... Another sentence in the arbitration provision of the retail installment contract, which is signed by H & S Homes and Christina, provides: The award of the arbitrator(s) shall be in writing and include a statement of reasons for the award. The award shall be final. The noun reason is not defined in Black's Law Dictionary (8th ed.2004). The first definition given for the noun reason in The American Heritage Dictionary of the English Language 1457 (4th ed.2000) is [t]he basis or motive for an action, decision, or conviction. Even if the conflicting provisions in the retail installment contract could be reconciled to require the arbitrator to include a statement of the reasons for the award, there is no evidence indicating that the arbitrator knew that his written award, which he wrote [b]ased upon the testimony and documents presented at the hearing as well as the written arguments and briefs, did not constitute a statement of reason, the basis or motive for [his] action, decision, or conviction. H & S Homes wants this Court to define a statement of reasons for the award as an award including findings of fact and conclusions of law, which is what H & S Homes asked the arbitrator to do after the award was made. This we will not do. There is no proof that there has been a manifest disregard of the law, as that term was defined in Birmingham News Co. v. Horn, supra, in regard to this issue.