When you agree to an arbitration clause in an agreement bear in mind that the arbitration award, whether you like it or not, is likely to be the final word. The guiding principle of an agreed arbitration is finality – right or wrong.

The arbitration agreement must provide for the right of appeal if the parties want that option.

The arbitration agreement must provide for the right of appeal if the parties want that option

An arbitrator, like a court, exercises a discretion when he or she makes an award of costs.  Section 28 of the Arbitration Act provides that the award of an arbitrator is ordinarily final and binding.

A court can set aside an arbitration award in limited instances: where the arbitration tribunal has misconducted itself, or committed a gross irregularity, or exceeded its powers, or the award has been improperly obtained.  A court can remit a matter back to the arbitration tribunal on good cause shown.  Good cause is interpreted in the context of the Arbitration Act and exists mainly where the arbitrator has failed to deal with an issue that was before him or her.

But once a matter has been addressed and decided there is little room for remitting it for reconsideration.  A court also will not allow parties to take an arbitration award on appeal under the guise of a remittal.