Should the arbitrator’s decision stand? Why or why not?
A pediatrician contracted with Oxford Health Plans to provide care for Oxford members at specified rates. The pediatrician later filed suit in state court against Oxford on behalf of himself "and a proposed class of other physicians," alleging that Oxford had not made proper payment to them. Oxford moved to compel arbitration, relying on a contractual clause that provided: "No civil action concerning any dispute ... shall be instituted before any court and all such disputes shall be submitted to final and binding arbitration..." The state court granted Oxford's motion and referred the matter to arbitration. Both parties agreed that the arbitrator should decide whether their contract authorized class arbitration. The arbitrator, relying on the text of the contract, determined that the contract did authorize class arbitration. Oxford then filed a motion in federal court attempting to vacate the arbitrator's decision on the ground that the arbitrator "exceeded his powers" under Section 10(a)(4) of the Federal Arbitration Act.
Should the arbitrator’s decision stand? Why or why not?
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