Mistake Of Arbitrator Not Enough To Invoke § 10 (a)(4) Of Federal Arbitration Act.

A medical doctor entered into a contract with a health plan. The doctor agreed to provide medical care to members of the health plan and the health plan agreed to pay the doctor. The doctor filed a class action in New Jersey alleging the health plan failed to make full and prompt payment to the doctors. The state court ordered the matter to arbitration, and the arbitrator determined the contract authorized class arbitration. The health plan twice filed a motion in federal court to vacate the arbitrator’s decision on the ground that the arbitrator exceeded his powers. Both the federal district court and the court of appeals twice ruled against the health plan. The health plan sought relief from the United States Supreme Court, arguing that under section 10, subdivision (a)(4) of the Federal Arbitration Act [9 U.S.C. § 1, et seq.], the arbitrator exceeded his powers.  The high court affirmed the lower federal courts, denying relief to the health plan, stating: “All we say is that convincing a court of an arbitrator’s error—even his grave error—is not enough. So long as the arbitrator was ‘arguably construing’ the contract—which this one was—a court may not correct his mistakes under section 10, subdivision (a)(4).”  Oxford Health Plans LLC v. Sutter  (U.S. Sup. Ct.; June 10, 2013) 133 S.Ct. 2064, [186 L.Ed.2d 113].