On July 3, 2018, the First Department issued a decision in Huntsman International LLC v. Albemarle Corp., 2018 NY Slip Op. 04962, holding that employees who did not sign an agreement containing an arbitration provision nevertheless were entitled to enforce the provision, explaining: The individual defendants, who were officers or employees of Rockwood and did… Read more »
Blogs
Posts Categorized: Arbitation, Mediation and Other ADR
Fraud Claim Does Not Invalidate Arbitration Provision Unless Fraud Relates to That Provision
On June 27, 2018, the Second Department issued a decision in Zafar v. Fast Track Leasing, LLC, 2018 NY Slip Op. 04774, holding that a fraud claim does not invalidate an arbitration provision unless the fraud relates to that provision, explaining: A party may not be compelled to arbitrate a dispute unless there is evidence… Read more »
Plaintiff Cannot Avoid Arbitration Absent Allegations of Fraud Relating Specifically to Inclusion of Arbitration Clause
On May 25, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Curtis v. Merrill, Lynch, Pierce, Fenner & Smith, Inc., 2018 NY Slip Op. 31011(U), holding that a plaintiff could not avoid the effect of an arbitration clause without showing that the clause, not just the contract in which… Read more »
Breach of Contract Action Barred by Contract’s Mandatory Mediation Provision
On May 24, 2018, the First Department issued a decision in Korangy v. Malone, 2018 NY Slip Op. 03767, holding that a breach of contract claim was barred by a contract’s mandatory mediation provision, explaining: The motion court correctly dismissed the breach of contract cause of action, as under the plain language of the operating… Read more »
Failure to Use Contract’s Pre-Suit Dispute Resolution Process Dooms Claim
On May 3, 2018, the First Department issued a decision in MPEG LA, L.L.C. v America Information Systems, Inc., 2018 NY Slip Op. 03210, dismissing a claim for failure to use a pre-suit audit procedure, explaining: The claim that Toshiba under-reported and underpaid royalties under the parties’ license agreement was correctly dismissed because plaintiff failed… Read more »
Court Declines to Interpret Arbitration Agreement Where Agreement Leaves That Decision to Arbitrators
On May 1, 2018, Justice Ostrager of the New York County Commercial Division issued a decision in Footprint Power Salem Harbor Development, L.P. v. Iberdrola Energy Products, Inc., 2018 NY Slip Op. 30794(U), denying a motion to stay an arbitration, ruling that under the arbitration agreement, it was for the arbitrators, not the court, to… Read more »
Whether Signature on Agreement Containing Arbitration Clause Was Forged is for Court to Determine
April 25, 2018, the Second Department issued a decision in Alam v. Uddin, 2018 NY Slip Op. 02763, holding that the question of whether the signature on an agreement containing an arbitration clause was forged was for the court, not an arbitrator, to determine, explaining: Where a party has applied for an order compelling arbitration,… Read more »
Arbitral Award Vacated Based on Failure to Disclose that Arbitrator Was Party’s Fact Witness and Was Under Indictment
On April 26, 2018, the First Department issued a decision in Policy Administration Solutions, Inc. v. QBE Holdings, Inc., 2018 NY Slip Op. 02878, affirming the dismissal of an arbitral award for failure to disclose that an arbitrator was a party’s fact witness and was under indictment, explaining: Defendants’ failure to disclose to the arbitrator… Read more »
Plaintiffs Waived Right to Arbitrate By Initiating Lawsuit
On April 17, 2018, the First Department issued a decision in Black Rhino Investments LLC v. Wilson, 2018 NY Slip Op. 02582, holding that the plaintiffs in a lawsuit had waived their right to arbitrate their dispute by bringing the lawsuit, explaining: Plaintiffs commenced this action upon an alleged oral agreement entered into in October… Read more »
Specific Forum Selection Clause in Broker’s Employment Contract Not Superseded by Arbitration Clause in Later-Signed Form U-4
On February 28, 2018, Justice Scarpulla of the New York County Commercial Division issued a decision in Hyuncheol Hwang v. Mirae Asset Sec. (USA) Inc., 2018 NY Slip Op. 30368(U), holding that a forum selection clause in a broker’s employment contract was not superseded by an arbitration clause in a later-signed Form U-4, explaining: The… Read more »