What Happens After an Arbitration Award Is Issued?
June 2, 2025
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Arbitration has become a preferred alternative dispute resolution method for resolving commercial disputes, family law matters, and international disputes without the formality of court proceedings. Whether you initiated a request for arbitration under detailed arbitration agreements or a Court‑ordered arbitration program, the arbitration process culminates in arbitration awards issued by a neutral arbitrator or arbitral panel. But what happens next? From enforcing arbitration awards and confirming them in court to exploring judicial review or settlement via consent awards, understanding post‑award steps—and the arbitration clauses that govern them—is critical to achieving efficient resolution and minimizing additional costs.
Understanding the Arbitration Award and Final Order
Once the arbitration tribunal considers all evidence—from expert reports and document submission in the discovery phase to testimony at arbitration hearings—it issues an arbitration award that serves as the final order of arbitration. This decision, whether rendered by a sole arbitrator or a three‑member arbitration panel (including party‑appointed arbitrators and neutrals), outlines liability, money damages (compensatory, consequential, or punitive), and any directives such as injunctions or specific performance. Under the Federal Arbitration Act, enforcement of arbitration awards in any U.S. district court is akin to converting the award into a civil judgment, making breach of the award a violation of applicable rules.
Immediate Post‑Award Steps: Review, Notice, and Compliance
Within the prescribed period—often a 30‑day period after the award is delivered—each party receives formal notice of claims and a copy of the award. Parties should:
- Review the award for accuracy, ensuring the arbitrator did not exceed powers or ignore arbitration clauses in the contract.
- Check for dissenting opinions or challenges to the arbitration decisions based on potential prejudice or non‑neutral arbitrator conduct.
- Decide on voluntary compliance or prepare to seek court confirmation.
Timely action is essential; failure to file a petition to confirm or vacate within statutory deadlines (typically three months for vacatur motions, one year for confirmation petitions) can forfeit your rights.
Timeline to Settlement: From Award to Payment
The time it takes to get a settlement after arbitration depends on the arbitration forum and complexity of the dispute. In streamlined settings—such as FINRA arbitration programs or simplified grievance arbitration—parties may see an award within eight months of filing the arbitration claim. In complex business arbitration involving intricate trade secrets or international disputes, the arbitration procedure (including discovery cutoff and expert witness depositions) can extend to 16–18 months before the award is issued. Post‑award, voluntary payment of money damages or continuing service orders (e.g., for intellectual property licensing) can add further weeks, depending on the allocation of costs and the losing party’s commitment to arbitration.
Enforcing Arbitration Awards: Voluntary vs. Court Confirmation
Many parties comply voluntarily with arbitration awards, avoiding additional fees and preserving business relationships. If the respondent refuses to honor the award’s payment terms or continued service directives, the claimant must file a petition for confirmation under 9 U.S.C. § 9. Once confirmed, the award becomes a binding judgment enforceable through garnishment, liens, or asset seizure. To challenge confirmation, a party may move to vacate on narrow grounds—such as corruption, manifest disregard of arbitration rules, or exceeding arbitrator authority—under Sections 10 and 11 of the FAA, but courts seldom overturn arbitration awards.
Challenging an Arbitration Award: Grounds and Procedures
Despite arbitration’s finality, limited avenues exist to contest an award:
- Corruption or fraud in the arbitration process, including misuse of document requests or concealment of non‑privileged documents.
- Partiality or a non‑neutral arbitrator, demonstrated by undisclosed conflicts of interest within the pool of arbitrators.
- Exceeding the scope of arbitration authority—rulings on matters outside the arbitration agreement’s subject matter or applicable rules.
- Procedural irregularities, such as denial of a benefit review conference or failure to permit a reasonable discovery process (e.g., expert discovery cutoff or percipient discovery).
Motions to vacate must be filed “before the court” and typically within three months of award delivery; any extension of time or discovery phase disputes should be resolved promptly to avoid procedural bars.
Settlement and Consent Awards: Alternative Remedies
Often, parties seek a consent award—a hybrid that transforms a negotiated settlement into an enforceable arbitration award. This approach allows for tailored remedies beyond the original award, preserves confidentiality, and sidesteps formal appeal or vacatur proceedings. By filing the consent award with the arbitration provider or court, parties secure a judgment with the same enforceability as the initial award, ensuring compliance with minimal future disputes.
Key Procedural Deadlines and Administrative Considerations
To preserve rights and streamline enforcement:
- 30‑day period: Deadline to apply for confirmation or judicial review in many court‑annexed ADR programs.
- Three‑month cutoff: Deadline for motions to vacate or modify under the FAA.
- Statute of limitations: Typically one year to confirm an award and enforce through garnishment or liens.
Administrative costs—arbitration fees, arbitrator hourly rates, and cost of production for exhibits—are often allocated per the arbitration agreement. Reviewing your contract’s arbitration clauses and applicable arbitration rules in advance can reduce disputes over allocation of costs.
Financial Implications: Damages, Fees, and Cost Allocation
Arbitration awards may include:
- Money damages: Compensatory, consequential, reliance, or nominal damages for direct and indirect losses.
- Allocation of costs: Fees for the arbitration panel, administrative fees charged by the arbitration provider, and expenses for document submission and witness attendance.
- Additional costs: Expert witness fees, electronic document production, and travel expenses for arbitrators and panel members.
Well‑crafted arbitration clauses can specify fee‑shifting mechanisms or caps on discovery expenses to avoid unexpected family financial or business disputes over payment.
Long‑Term Implications and Future Dispute Avoidance
After enforcement or resolution, parties should:
- Review arbitration agreements: Update clauses to refine arbitrator selection process, define the pool of arbitrators, and set clear timelines for discovery and hearings.
- Implement alternative dispute resolution training: Prepare business operations teams and legal teams on arbitration procedure, grievance procedures, and dispute resolution process.
- Monitor contract performance: Use arbitration election letters and initial exchange protocols to address potential disputes early, reducing the likelihood of costly future benefit disputes.
By embedding robust arbitration clauses—including clear dispute resolution provisions, specified arbitration forums, and defined arbitral panel procedures—parties can streamline resolution of future disputes and safeguard commercial relationships.
With these steps, Rapid Ruling ensures every party understands their rights and obligations after arbitration, turning an arbitration award into an actionable, enforceable resolution.
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