Answer ... Section 10(a)(4) of the Federal Arbitration Act (FAA) provides that an arbitral award must be “mutual, final, and definite”. Additionally, Section 201 states that foreign awards must be in writing. Other than these two provisions, the FAA does not impose any procedural or substantive requirements.

However, institutional arbitral rules generally require that the award be in writing and be signed by a majority of the arbitrators. For example, Rule 46(a) of the American Arbitration Association Rules provides that: “Any award shall be in writing and signed by a majority of the arbitrators. It shall be executed in the form and manner required by law.”

The courts do not require arbitrators to give substantive reasons for their decisions (see United Steelworkers v Enter Wheel & Car Corp, 363 US 493, 598: “Arbitrators have no obligation to the court to give their reasons for an award”). As was stated in Mandell v Reeve, Nos 10 Civ 6530, 10 Civ 7389, 2011 WL 4585248, at *3 (SDNY, 4 October 2011), a court only needs to find “a barely colorable justification for the outcome reached” (aff’d, 510 FApp’x 73 (2d Cir 2013). This sentiment is reflected in the institutional arbitral rules. For example, Rule 46(b) of the American Arbitration Association Rules provides that: “The arbitrator need not render a reasoned award unless the parties request such an award in writing prior to appointment of the arbitrator or unless the arbitrator determines that a reasoned award is appropriate.”

Despite the very minimal requirements for an award to be valid, courts have held that “an arbitrator exceeds his or her authority by issuing an improper form of award” (Tully Const Co, 2015 WL 906128 at *18).

Answer ... The FAA does not require that awards be produced within a certain timeframe. However, the parties are free to incorporate a time limit within their arbitration agreement. Otherwise, the institutional arbitral rules generally specify time limits for the issue of arbitral awards. For example, Rule 15.7 of the International Institute for Conflict Prevention and Resolution Rules for Non-Administered Arbitration of Domestic and International Disputes 2014 requires the parties and the arbitrator(s) to use best efforts to ensure that:

• the dispute is submitted to the tribunal for decision within six months of the initial pre-hearing conference; and
• the final award is rendered within one month of the close of proceedings.

Additionally, Rule 45 of the American Arbitration Association Rules provides that: “The award shall be made promptly by the arbitrator and, unless otherwise agreed by the parties or specified by law, no later than 30 calendar days from the date of closing the hearing…”