APPEALING AN ARBITRATION DECISION IN NEW JERSEY

Confirmation of NJ Arbitration Awards

New Jersey has specific statutes that provide for the enforcement of arbitration awards against parties unwilling to comply with the arbitrator’s decision.  The winning party can petition the Superior Court of New Jersey to confirm the arbitration award. Confirming the arbitration award is the substantial equivalent of filing a civil judgment against a losing party. 

Parties may try to vacate or modify an arbitrator’s award under certain situations.

Specifically, N.J.S.A. 2A:24-7 provides, in part:

A party to an arbitration may, within 3 months after the award, commence an action for the confirmation of an award or for its modification, correction or avoidance.

The courts in NJ are required to confirm an arbitration award unless there are legal reasons not to. Once a court confirms the arbitration award, the award becomes an enforceable judgment, subject to enforcement and execution against the losing side.

If you feel that the arbitrator’s award should not be enforced, you should speak to an experienced arbitration attorney before spending significant additional money.  Contact Fredrick P. Niemann, Esq., an experienced NJ arbitration law attorney, at (888) 800-7442 or email him at fniemann@hnlawfirm.com to discuss the enforcement or appeal of a NJ arbitration award.  You will find Mr. Niemann easy to talk to and objective in offering his professional opinion.

What are the grounds to seek a Modification of an

Arbitration Award in NJ?

The New Jersey Arbitration Act offers just three grounds to modify or correct an arbitration award.  They are:

a.     A miscalculation of figures;

b.    When the arbitrator makes an award on an issue not before him/her and outside the scope of the arbitration; and

c.      Where the award is poorly written and unclear as to its terms. 

Only in those limited instances will a court in NJ modify or correct an arbitration award, and then only to effectuate the substance of the arbitrator’s decision. 

Can You Vacate an Arbitration Award in NJ? 

Yes, but it is extremely difficult

The grounds for vacating an arbitration award are extremely limited. Courts can vacate awards only under these limited circumstances:

a.     Fraud or undue means;

b.    Bias and partiality by the arbitrator;

c.    Where the arbitrator refused to postpone a hearing, upon good cause shown or refused to hear material and relevant evidence to the controversy, or of any other behavior prejudicial to the rights of any party;

d.    Where the arbitrator(s) exceeded his/her powers.

The Supreme Court of NJ has offered some guidance on the appealability of a NJ Arbitration Award when in a published legal decision it stated the following:

“Judicial review of an arbitrator’s decision is extremely limited under the New Jersey Arbitration Act.  A court will not overturn an arbitrator’s decision for mistakes of law or fact, as long as the arbitrator and his or her decision were not corrupt in any way and the arbitrator did not exceed his or her powers.  The parties are free to expand the scope of judicial review by including in their contract that an arbitrator must make their decision in conformance with New Jersey law, and that such awards may be reversed for mistakes of New Jersey law or for gross mistakes of fact finding or procedure but they must define those criteria in their agreement.

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Call Fredrick P. Niemann toll-free at

(855) 376-5291 or e-mail him at fniemann@hnlawfirm.com

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Arbitration lawyers serving these New Jersey Counties:

Monmouth County, Ocean County, Essex County, Cape May County, Mercer

County, Middlesex County, Bergen County, Morris County, Burlington County,

Union County, Somerset County, Hudson County, Passaic County

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