|
An arbitrator's failure to grant requests for additional discovery did not amount to misconduct when the applicable discovery rules leave decisions to compel discovery completely to the arbitrator's discretion, a federal court in Texas held.
In Roberts v. A.G. Edwards & Sons, Inc., No. B-06-17, 2007 WL 597371 (S.D. Tex. Feb. 21, 2007), Roberts claimed to have lost more than $30,000 after A.G. Edwards & Sons, ("Edwards") inappropriately invested his money in variable annuities. When the parties submitted their dispute to arbitration, the arbitrator awarded Roberts nearly $20,000 dollars in damages.
In opposing Roberts' motion to confirm, Edwards argued that the arbitrator committed misconduct by failing to grant repeated requests for additional discovery.
In rejecting this argument, the Court noted that the applicable discovery rules in this case left the decision to compel discovery completely within the arbitrator's discretion. Because the arbitrator was under no obligation to explain his decision, it fell upon Edwards to refute every possible rational basis for the arbitrator's denial. Edwards failed to do so.
Additionally, there were numerous rational grounds upon which the arbitrator could have based his denial to compel discovery, and Edwards presented no evidence that the requested documents were somehow central to its defense.
Subscribe to a free weekly update on ADR case law and
legislation
|