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Alternative Dispute Resolution


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G. Kevin Turner, Registered Representative of Park Avenue Securities, LLC, (PAS). Securities products and services are offered through PAS. Financial Representatives, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. First Financial Group is not an affiliate or subsidiary of PAS or Guardian. Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY, or provided by Guardian. Product provisions and features may vary from state to state. Neither Guardian, nor its subsidiaries, agents of employees provide tax or legal advice. You should consult your tax or legal advisor regarding your individual situation. PAS is a member FINRA, SIPC.


within the Act’s coverage.”); Trevathan v. Newport News Shipbuilding & Drydock Co., 752 F. Supp. 698, 700 (E.D. Va. 1990) (same), aff ’d, 944 F.2d 902 (4th Cir. 1991). Tus, “[w] hen, as here, a suit is in substance no more than a collateral attack on the award itself, it is governed by the provisions of the Act.” Foster, 808 F.2d at 42. See also Tamari v. Bache & Co. (Lebanon) S.A.L., 565 F.2d 1194, 1202 (7th Cir. 1977) (subsequent complaint alleging “misconduct in the arbitration proceedings” based on alleged arbitrator bias “reviewable only under Section 10” of the FAA). Although arbitration can be a useful way to resolve


disagreements between parties, litigants have found ways to make it nearly as complex and expensive as everyday litigation. As Rent-a-Center, West and those cases before it all attest, challenges to the validity of an arbitration agreement may embroil the parties in lengthy court proceedings that, presumably, they never contemplated when they first agreed to arbitration. While there is a mounting body of law ever narrowing the scope of such challenges, inconsistencies between state and federal courts’ enforcement of the rules suggest the fight is far from over. Corey and its progeny, including Gulf Petro Trading Co.,


demonstrate that forcing an opponent to adhere to the FAA’s exclusive review and enforcement mechanisms can be time-


consuming and expensive. While arbitration does have its advantages – confidentiality being chief among them – one cannot assume that the goals of efficiency, speedy resolution, and lower cost will necessarily be met. If, however, courts continue to reject collateral attacks on arbitral awards, realistic and viable alternatives to litigation may yet be a reality for all participants. 


Biography Andrew Gendron is a partner in Venable’s Commercial


North litigation practice group. His civil trial and appellate practice focuses on complex matters and class actions, commercial disputes, shareholder litigation, environmental, and product liability cases in state and federal courts across the country. He also conducts corporate investigations. His offices are in Baltimore and Towson. Shannon Beamer is an associate in Venable’s Commercial


North litigation practice group. She works on a variety of matters, including breach of contract, securities, and insurance coverage disputes, as well as corporate investigations on behalf of corporations and individuals in the insurance, health care, and education industries. Her office is in Baltimore.


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