Auto Equity Loans of Delaware, LLC v. Baird

Summary

The Court affirmed the Superior Court’s reinstatement and confirmation of arbitration awards holding the loan agreements usurious under Pennsylvania law. Although the arbitrator’s choice-of-law analysis and supporting authorities were questionable, the lender failed to prove that the arbitrator knowingly and willfully refused to apply a clearly governing legal principle. The Court applied the highly deferential standard governing review of arbitration awards and held that legal error or misunderstanding alone did not establish manifest disregard of the law.