Baravati v. Josephthal, Lyon & Ross, Inc.
United States Court of Appeals for the Seventh Circuit
28 F.3d. 704 (1994)
- Written by Alexander Hager-DeMyer, JD
Facts
Amhad Baravati (plaintiff) was a broker for Josephthal, Lyon & Ross, Inc. (firm) (defendant). Baravati signed an employment contract with a mandatory arbitration clause, and upon his termination for alleged fraudulent and wrongful theft of the firm’s property, Baravati invoked arbitration proceedings. The arbitrators awarded Baravati significant compensatory and punitive damages. Baravati petitioned a federal district court to affirm the award, and the court ruled in Baravati’s favor. The firm appealed to the Seventh Circuit. The court ruled against the firm’s claims, affirming the district court’s judgment, and specifically addressed the circuit’s outlook on judicial review of arbitral awards crafted by an arbitrator demonstrating a manifest disregard of the law.
Rule of Law
Issue
Holding and Reasoning (Posner, C.J.)
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