Universal Telephone Exchange, Inc. v. ZTE Corporation, et al.

Section 10 of the Federal Arbitration Act (“FAA”) provides that an arbitration award may be vacated where the award “was procured by corruption, fraud, or undue means.” Texas Civil Practices and Remedies Code Section 171.088 provides that the court shall vacate an award “obtained by corruption, fraud, or other undue means.” Texas Civil Practices and Remedies Code Section 171.088 is Uniform Arbitration Act Section 12, which is almost identical to Revised Uniform Arbitration Act Section 23. Those form the basis of all U.S. states arbitration laws. THE QUESTION PRESENTED IS: Does an admission by a party of contemporaneous illegal activity at the time of the issues in dispute in arbitration, or contemporaneous with the time of the arbitration, or both times, or admission of illegal activities affecting the integrity of adjudicative processes establish “fraud, corruption or undue means” sufficient to vacate an arbitration award under FAA Section 10(a)(1), Texas Civil Practices and Remedies Code Section 171.088(a)(1) Uniform Arbitration Act Section 12, or Revised Uniform Arbitration Act Section 23?