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Jump to full article: Vermont Department of Libraries, 2008-02-01
Intro: Since the granting of an exemption by one settling state will automatically lead to the reallocation of its allocated portion of the NPM adjustment to all other non-exempt settling states, each governmental signatory has its own self-interest at stake in the outcome of this issue, which is necessarily in conflict with every other state. Such a result defeats the whole purpose of having a Master Settlement Agreement. The mechanism of submitting disputes involving the decisions of the Independent Auditor to a neutral panel of competent arbitrators, who are guided by one clearly articulated set of rules that apply universally in a process where all parties can fully and effectively participate, obviates this problem and ensures fairness for all parties to the MSA. To hold otherwise is contrary to both the spirit and the plain language of the Master Settlement Agreement.
Id. We agree. Even if the State’s fear that a single arbitration panel will be unable to adequately address the specifics of each state’s case proves to be true, that fear is not a basis for denying arbitration here. How the arbitrators pursue their determination of diligent enforcement is a separate issue from whether arbitration is required by the MSA. Such problems, if they do materialize, may be raised in a post-arbitration motion to vacate or modify the award pursuant to § 16(a)(3) of the FAA.
The order compelling arbitration and dismissing the suit is affirmed.
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