South-Western Legal Studies in Business

If Arbitration Agreement Precludes Appeal, No Appeal Is Allowed
Description Appeals court held that an arbitration agreement clearly stated that no appeal from the award by the arbitrator would be allowed. That contractual agreement will be enforced, so the courts have no jurisdiction over the matter..
Topic Alternate Dispute Resolution
Key Words Arbitration; Award; Appeal; Finality
C A S E   S U M M A R Y
Facts In a dispute over payment of royalties for a patented invention, an arbitrator awarded Gorelick $4.5 million to be paid by MACTEC. The losing party filed suit in federal court to vacate the arbitration award, contending that the arbitrator's interpretation of the disputed contract constituted illegal patent misuse. The district court dismissed the suit. MACTEC appealed.
Decision

Affirmed. The arbitration clause between the parties stated that judgment upon award rendered by the arbitrator "shall be final and nonappealable." That established the parties intent to preclude an appellate court from reviewing the award. The court lacked jurisdiction to review the award. So long as the parties make clear their intent, it will be upheld. The claim of patent misuse would not change the outcome.

Citation MACTEC, Inc. v. Gorelick, 427 F.3d 821 (10th Cir., 2005)

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