An arbitration award is the written final decision issued by a neutral arbitrator or panel to resolve a dispute that the parties agreed to settle outside of court. It sets out who wins, what the losing side must do or pay, and the reasoning behind the result. On its own, though, the document is not a court order, so collecting on it usually takes an additional legal step.
What the Written Award Contains
The award identifies the parties, their legal representatives, and the arbitrators who heard the case. It summarizes the case history and the facts the arbitrator found to be true.
The core of the document is the decision itself: an order for one party to pay money or to perform a specific action, along with the arbitrator’s reasoning and how the law was applied to the facts. The award also addresses how legal fees and costs are divided, and it must be signed and dated by the arbitrator.
Turning the Award Into an Enforceable Judgment
Winning does not guarantee the losing party will pay or comply. An arbitration award is not automatically enforceable the way a court order is. If the other side refuses to honor it, the winning party has to ask a court to convert the award into a judgment through a process called confirmation.
If the parties previously agreed that a court could enter judgment on the award, a party may apply for confirmation. Under federal law, that application must generally be filed within one year after the arbitrator issues the award.1Office of the Law Revision Counsel. 9 U.S.C. § 9
Once confirmed, the award becomes an official court judgment with the same force as any other civil judgment from that court. The winning party can then use standard collection tools, such as placing liens on property or garnishing wages, subject to the laws of the jurisdiction.2Office of the Law Revision Counsel. 9 U.S.C. § 13
Challenging an Award Is Narrow and Time-Limited
The window to attack an award is short and the grounds are few. A party who wants to challenge an award must file a motion to vacate it, and notice must be served on the opposing party within three months after the award is filed or delivered.3Office of the Law Revision Counsel. 9 U.S.C. § 12
Courts generally defer to the arbitrator and will not rehear the dispute. Federal law allows a court to vacate an award only on narrow grounds:4Office of the Law Revision Counsel. 9 U.S.C. § 10
- The award was procured by corruption, fraud, or other undue means.
- There was evident partiality or corruption on the part of the arbitrator.
- The arbitrator engaged in misconduct, such as refusing to hear relevant evidence or postponing a hearing without good cause.
- The arbitrator exceeded their powers or failed to issue a final and definite award on the issues submitted.
Disagreeing with how the arbitrator weighed the evidence or interpreted the contract is not on that list. For most parties, the practical path after an award is either compliance or confirmation, not a second round of litigation on the merits.