Prospect CharterCARE, LLC

The plaintiff, Prospect CharterCARE, LLC (PCC), appealed from an order of the Superior Court denying its motion to vacate an arbitration award and confirming the award in favor of the defendant, Michael E. Conklin, Jr. On appeal, PCC contended that the arbitrator exceeded his authority by: (1) relying on a "concededly erroneous" factual assumption and thereby manifestly disregarding the applicable law (2) manifestly disregarding the clear and unambiguous contractual language that should have precluded any award in favor of the defendant and (3) ordering PCC to pay the defendant extended severance benefits when the defendant failed to prove that PCC had assumed liability for the employment contracts entered into between the defendant and his previous employer—PCC's predecessor entity. The Supreme Court held that the arbitrator neither manifestly disregarded the law nor manifestly disregarded a contractual provision, because the arbitrator's award drew its essence from the parties' agreement and was sufficiently grounded in the contract to be within the scope of his authority as an arbitrator. Additionally, the Supreme Court concluded that PCC had waived its argument with respect to assumption of liability under the employment contract. For these reasons, the Supreme Court affirmed the order and the judgment of the Superior Court.