In the matter of SPX Corporation v. Garda USA, Inc. et al., Del. Supr., No. 332, 2013 (June 16, 2014), the Delaware Supreme Court was asked to consider the circumstances under which an order entered by an arbitrator may be vacated based on allegations that the arbitrator manifestly disregarded the law. Pursuant to Section 5714(a) (3) of the Delaware Arbitration Act “[t]he Court shall vacate an award where . . .[t]he arbitrators exceeded their powers, or so imperfectly executed them that a final and definite award upon the subject matter submitted was not made.” Id. at 9. After examining Section 5714, the Court concluded that “[t]o vacate an arbitration award based on ‘manifest disregard of the law,’ a court must find that the arbitrator consciously chose to ignore a legal principle, or contract term, that is so clear that it is not subject to reasonable debate.” Id. at 2. The decision may be read in its entirety here.
