NO APPELLATE JURISDICTION TO REVIEW DECISION VACATING ARBITRATION AWARD FOR EVIDENT PARTIALITY
William Smythe invested funds with Morgan Keegan & Co, Inc. He brought a FINRA arbitration against Morgan Keegan alleging improper investments. Pursuant to FINRA rules, the parties named potential arbitrators, and Morgan Keegan objected to certain of them, two of whom were appointed to the panel over its objections. The panel found in favor of Smythe, and Morgan Keegan brought an action in Tennessee state court seeking to vacate the award based on the alleged “evident partiality” of two of the arbitrators. The trial court agreed with Morgan Keegan and vacated the award and remanded for a new FINRA arbitration. Smythe appealed. The appellate court lacked jurisdiction to hear the appeal, noting that while the Federal Arbitration Act specifically grants the right to appeal vacatur of an arbitration award, the comparable Tennessee arbitration statute allows for appellate review of vacatur only if unaccompanied by an order to remand for a new arbitration. Morgan Keegan & Co. v. Smythe, No. CH092353 (Tenn. Ct. App. Nov. 14, 2011)
This post written by John Pitblado.
