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When an international arbitration award is issued in the United States, and one party wants to have the award confirmed, enforced or vacated, three different bodies of law are potentially implicated: (1) the Convention on the Recognition and Enforcement of Foreign Arbitral Awards ("New York Convention"), (2) the Federal Arbitration Act ("FAA"), and (3) state law. A recent decision by the United States Court of Appeals for the Third Circuit in Ario v. Underwriting Members of Syndicate 53 at Lloyds highlights the complex interaction of these laws in the context of an attempt to vacate an international award. The case demonstrates both why the parties' selection of the seat of an arbitration is critical and why parties must take care in drafting arbitration clauses.

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