Nielsen, is Manifest Disregard Still Viable?
While Stolt-Nielsen is important for what it did decide, it is equally important for what it did not decide – namely, whether manifest disregard of the law survives post-Hall Street as an independent basis for vacating or opposing confirmation of arbitral awards, or whether manifest disregard is merely a judicial gloss on the grounds for vacatur set forth in 9 U.S.C. § 10. Notably, Stolt-Nielsen appears implicitly to have acknowledged the continued viability of manifest disregard as a grounds for vacating or opposing confirmation of arbitral awards, which calls into question the rulings of those courts that have held that manifest disregard did not survive Hall Street. However, absent an express statement endorsing the continued viability of manifest disregard, it seems likely that the debate will continue. Conclusion Stolt-Nielsen signals a clear change for the future of class arbitration. Stolt-Nielsen also suggests that manifest disregard of the law continues to survive Hall Street.
