Summary
This D.C. Circuit opinion affirms the district court's dismissal of the Virgin Islands Housing Finance Authority's motion to vacate an arbitration award against FEMA. The court held that the Authority failed to serve its Federal Arbitration Act motion within the strict three-month deadline, rejecting the argument that an allegedly void award bypasses this time limit. Additionally, the court ruled that the FAA provides an exclusive and adequate remedy for challenging the award, thereby precluding parallel judicial review under the Administrative Procedure Act.
Topics
Practice areas
Questions Presented
- Whether the FAA’s three‑month notice deadline applies when the arbitration award is alleged to be void because the panel lacked a quorum.
- Whether the FAA precludes the Authority’s claim for review under the Administrative Procedure Act.
Holdings
- The deadline applies; the Authority’s notice was untimely and the motion to vacate is denied.
- The FAA provides an exclusive and adequate review scheme, thereby precluding APA review of the arbitration award.
Key quotations
“We agree with the district court that it did not. Under the FAA, once an arbitration award has issued, a party to the arbitration can move to vacate the award in federal district court.” (at 24)
“We agree with the district court that the FAA precludes the Authority’s APA claim because the FAA provides an exclusive review scheme that is incompatible with APA review.” (at 30)
Factual background
After two Category 5 hurricanes struck the U.S. Virgin Islands, FEMA provided disaster‑relief funding. The Virgin Islands Housing Finance Authority contracted for reconstruction projects and sought reimbursement of over $594 million. FEMA denied a portion of the claim, and the Authority elected arbitration before the Civilian Board of Contract Appeals. The Board issued an award on June 28 2023 without a full three‑member panel, and the Authority moved to vacate the award in district court under the FAA and APA.
Procedural history
The district court held that the Authority failed to serve timely notice of its motion to vacate the arbitration award under the Federal Arbitration Act and that the Administrative Procedure Act claim was precluded because the FAA provides an exclusive review scheme. The district court denied both claims.