Commercial Division Blog: Current Developments in the Commercial Divisions of the New York State Courts

On May 31, 2024, Justice Melissa A. Crane declined to dismiss part of a petition to vacate an arbitration award where that award “punted” certain disputes between the parties to a corporate board of trustees. In Naftali Rotenstreich, Chabad of Gramercy Park v. Shaya Lesches, YJP Foundation, Inc., Index No. 655503/2023, the Court granted a motion to dismiss only to the extent the petition challenged the arbitral panel’s rulings on the merits of the dispute. However, the Court found that the part of the award that referred “[a]ll disputed issues regarding salaries, conflicts of interest(s), involving the employees and creditors of [the corporate respondent]” had “defeated most of the reason for the arbitration in the first place.” The Court explained: Read More

On January 14, 2024, Justice Margaret A. Chan denied a motion to vacate an arbitral award brought by a party that had previously moved to compel arbitration in the first place. The decision in Skyline Steel, LLC v. PilePro LLC, et al., Index No. 650531/2015, noted that petitioner Skyline Steel had first initiated the matter by moving to stay arbitration. Respondent PilePro opposed that motion and successfully cross-moved to compel arbitration. The parties then proceeded to arbitration under JAMS Expedited Procedures. However, after PilePro lost in arbitration and was forced to pay costs and fees, it returned to court with a motion under CPLR 7511 to vacate the arbitral awards, arguing among other things that the arbitration panel exceeded its authority. The Court rejected that motion, finding that the arbitration panel had carefully considered the evidence, made logical rulings, and acted within its authority when it awarded Skyline more than $200,000 in fees and costs. The Court explained, in part: Read More