On June 12, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Werner Worldwide Holding Co., LP v. Werner US Sub Holding, Inc., 2019 NY Slip Op. 31691(U), refusing to vacate an arbitral award for manifest disregard of the law, explaining: Under CPLR § 7511(b)(1)(iii), an arbitration award may be... Read more »
Blogs
Posts Categorized: Arbitation, Mediation and Other ADR
Appellants Who Were Not Parties to Arbitration Waived Right to Challenge Award
On June 6, 2019, the First Department issued a decision in Matter of Capital Enters. Co. v. Dworman, 2019 NY Slip Op. 04494, holding that appellants who did not participate in an arbitration lacked standing to challenge the award, explaining: Nonparty appellants, which are partners in petitioner, lack standing to challenge this arbitration, as they... Read more »
Arbitration Clause in Law Firm Engagement Letter Covers Dispute With Client Arising After Engagement Ended
On May 23, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Guo Wengui v. Schiller, 2019 NY Slip Op. 31436(U), holding that an arbitration clause in a law firm engagement letter covered a dispute arising after the engagement ended, explaining: Here, while the specific conduct of which Plaintiff complains... Read more »
Based on FINRA Rules, Court Declines to Order Class Action Arbitration
On May 15, 2019, the Second Department issued a decision in Rutella v. National Sec. Corp., 2019 NY Slip Op. 03833, reversing an order requiring class arbitration based on FINRA rules, explaining: The plaintiff . . . commenced this putative class action to recover damages for violations of Labor Law articles 6 and 19 on... Read more »
Arbitrator, Not Court, to Decide if Provision of Contract Unenforceable as a Matter of New York Public Policy
On April 22, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Selendy v. Quinn Emanuel Urquhart & Sullivan, LLP, 2019 NY Slip Op. 29119, holding that an arbitrator, not the court, should decide whether a contract provision was unenforceable as a matter of New York public policy, explaining: When determining... Read more »
Court Cannot Rule on Whether Dispute is Arbitrable When Agreement Explicitly Assigns That Task to the Arbitrator
On March 26, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in SM Sydell Hotels LLC v. Yucaipa U.S. Hospitality Partners Holdings, Inc., 2019 NY Slip Op. 30918(U), holding that a court cannot rule on whether a dispute is arbitrable when an agreement explicitly assigns that task to the arbitrator, explaining:... Read more »
First Department Affirms Order Remanding Arbitration to New Arbitrator
On April 11, 2019, the First Department issued a decision in Policy Admin. Solutions, Inc. v. QBE Holdings, Inc., 2019 NY Slip Op. 02818, affirming a lower court decision to remand an arbitration to a different arbitrator, explaining: “The court providently exercised its discretion in clarifying that the original arbitrator was not to hear the... Read more »
Non-Signatories Not Bound by Agreement to Arbitrate
On February 25, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in H. Roske & Assoc., Llp v Burghart, 2019 NY Slip Op 30479(U), holding that parties that did not sign an agreement to arbitrate are not required to arbitrate a dispute, explaining: A party may not be compelled to arbitrate... Read more »
Prompt Payment Act’s Arbitration Provisions Make Contract’s Agreement to Litigate Disputes Covered by the Act Unenforceable
On January 30, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in Dakota, Inc. v. Nicholson & Galloway, Inc., 2019 NY Slip Op. 30270(U), enforcing the Prompt Payment Act’s provisions making agreements to resolve disputes by litigation rather than arbitration unenforceable, explaining: Here, the plain language of the PPA makes void and... Read more »
Party That Benefited from Agreement With Arbitration Provision Bound by That Provision
On January 18, 2019, Justice Schecter of the New York County Commercial Division issued a decision in Petrides & Co. LLC v. Yorktown Partners LLC, 2019 NY Slip Op. 30157(U), holding that a party that benefits from a contract iwth an arbitration provision was bound by that provision even though he did not sign the contract,... Read more »