American Arbitration Law: by Ian R. Macneil

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By Ian R. Macneil

With an overburdened and bulky procedure of courtroom litigation, arbitration is turning into an more and more appealing technique of settling disputes. govt enforcement of arbitration agreements and awards is, in spite of the fact that, rife with tensions. between them are tensions among freedom of agreement and the necessity to guard the vulnerable or ill-informed, among the protections of judicial technique and the potency and responsiveness of extra casual justice, among the government and the states. Macneil examines the background of the yank arbitration legislation that offers with those and different tensions. He analyzes the personalities and forces that lively the passing of the USA Arbitration Act of 1925, and its later revolutionizing by means of the ideally suited court docket. Macneil additionally discusses how distorted perceptions of arbitration heritage in flip distort present law.

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Trinidad Lake Pet. Co. Y. 1914)13 of Judge Charles M. Hough, who carefully picked apart all the reasons advanced for judicial refusals to give effect to executory arbitration agreements, found each totally without merit, then concluded that he was bound by Supreme Court precedent to refuse to stay the suits pending arbitration. A final source of the reform movement was English law,14 both judge-made and statutory. The lodestar of the former was the House of Lords decision in Scott v. Avery,15 which allowed parties effectively to agree that arbitration would be a condition precedent to the bringing of an action for breach of the contract containing the arbitration clause.

19 It applied not only to submissions made 36 Reformation of American Arbitration Law as prescribed in the new law, but to others as well,20 presumably informal writings (respecting existing controversies) and possibly oral submissions. But to have this effect, the submission was required to contain a stipulation authorizing the entry of judgment upon the award. 24 Such provisions presumably were now to be governed thereafter by common law principles respecting liquidated damages, penalties, and forfeitures.

1898)62 used traditional ouster of jurisdiction arguments in refusing to enforce an executory agreement to arbitrate disputes. 65 Indeed there were perhaps more such cases than appear: whenever a federal court based its decision on ouster of jurisdiction66 it may have been thinking of that argument not only in terms of policy respecting arbitration but also in terms on the limitations of state law governing in federal courts. Another route was that adopted in United States Asphalt Ref. Co. v. Trinidad Lake Pet.

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