You Can’t Sue an Arbitrator You Don’t Like – There is Arbitral Immunity
Binding arbitration is exactly that – binding. It is a BINDING dispute resolution process. It is a creature of contract meaning that if you want arbitration to resolve your disputes, you need an arbitration provision in your contract. If you don’t want arbitration to resolve your disputes, don’t agree to an arbitration provision in your contract. But whether you arbitrate or not, you may not like the arbitrator and you may not like the outcome. That’s the nature of the beast. It’s the same with litigation. This does not mean, however, that you can sue an arbitrator that you don’t like.
In a recent case, Harris v. Dazzo, 50 Fla.L.Weekly D1806a (Fla. 3d DCA 2025), there was an arbitration provision in the contract. The contract required a three-person arbitration panel with the American Arbitration Association (AAA) with each side selecting an arbitrator and then the arbitrators selecting the third arbitrator which would serve as the chairperson. The chairperson filled out AAA’s required oath. (Before any arbitrator gets appointed, AAA requires arbitrators to issue an oath. The purpose of the oath is for the arbitrator to confirm his or her impartiality and ethical arbitrator responsibilities.)
An issue arose with the chairperson and a party moved to disqualify the arbitrator. The disqualification was considered by AAA’s administrative review council which granted the motion to disqualify the chairperson. You would think this would end the issue. Not here. The party separately sued the chairperson in court claiming fraudulent inducement and breach of contract. The arbitrator moved to dismiss the lawsuit under arbitral immunity, which the trial court denied. The arbitrator smartly moved for a petition of a writ of certiorari which the appellate court granted and dismissed the lawsuit. The reasoning is easy:
(1) “At bottom, arbitral immunity is absolute in nature. It is immunity from suit. Dragging an arbitrator into a litigation causes material harm that cannot be corrected on plenary appeal. Certiorari relief is available. Harris, supra (citations omitted).
(2) “To this end, absolute immunity attaches. [The chairperson’s] immunity is not overcome by allegations of bad faith, malice, or incompetence, such as these. The existence of the oath or an arbitration agreement does not override the immunity.” Harris, supra (citations omitted).
(3) “If we were to follow [the party’s] reasoning, all arbitrators and judges would be opened to litigation. A disgruntled litigant would simply need to cite their oath of office. This simply cannot be.”Harris, supra.
Again, you may not like an arbitrator and you may not like the ruling. This doesn’t mean you can sue the arbitrator. This would have quite a chilling effect if parties could simply sue arbitrators or judges they didn’t like!
Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.
