Louisiana strongly favors arbitration between parties when they have a dispute. Generally, it is less expensive and less time consuming than taking the case to trial. The arbitrator will determine the outcome of the damages based on an assessment of all of the circumstances in the case. Each side presents their side of the story so that the arbitrator can make a fair determination of the damages.
In many cases, once the arbitrator makes a decision, neither side can contest the decision unless it violates the law in some way. The Supreme Court of Louisiana has stated, “Because of the strong public policy favoring arbitration, arbitration awards are presumed to be valid. Errors of fact or law do not invalidate a fair and honest arbitration award.” National Tea Co. v. Richmond, 548 So.2d 939, 932 (La. 1989). This type of thinking makes it very difficult to set aside a decision of an arbitrator once it is completed. A case from the parish of St. Landry illustrates this idea.
In that case, the plaintiffs, a family that included two small children, bought a mobile home that they later discovered had mold in the walls and the roof had rotted. The mold likely contributed to their children’s breathing problems, and the family sought damages from both the manufacturer and the seller of the mobile home. The parties were required to arbitrate because the family signed an Arbitration Agreement shortly after they bought the mobile home.