Employer cannot void arbitration outcome by arguing attorney lacked authority to agree
Ragab Morsi sued his former employer, arguing that he was unlawfully discriminated against because of his Egyptian heritage. The parties ultimately agreed to dismiss the case and attend arbitration, instead. They selected a mutually satisfactory arbitrator, who ruled in Morsi's favor. The emloyer/Defendant then objected to the award and asked the Court to set it aside on the basis that the Defense attorney lacked the client's authority to agree to arbitration.
The trial judge refused to hold an evidentiary hearing on the subject, and summarily rejected the employer's claims: it then appealed to the Court of Appeals. The higher court agreed with the trial judge that the defendant could not argue lack of authority where it had appeared at the Arbitration and participated and the other side and no reason to believe that it had not approved participation.