On December 16, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Euro Pac. Capital, Inc. v. Fat Brands, Inc., 2020 NY Slip Op. 34217(U), holding that non-signatories were not bound by an agreement’s arbitration clause, explaining: Pursuant to CPLR § 7503(b), a stay of arbitration may be granted on... Read more »
Blogs
Posts Categorized: Arbitation, Mediation and Other ADR
Parties Bound by Agreement to Beth Din Arbitration
On December 11, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Fein v. Berger, 2020 NY Slip Op. 34148(U), holding that litigants were required to arbitrate their dispute before a Beth Din, explaining: The parties dispute whether arbitration of disputes before the Beth Din is mandatory or merely permissive.... Read more »
FINRA Rules Held to Create Obligation to Arbitrate
On December 9, 2020, Justice Friedman of the New York County Commercial Division issued a decision in TD Ameritrade, Inc. v. Purshe Kaplan Sterling Invs., Inc., 2020 NY Slip Op. 34120(U), holding that the FINRA rules constituted an agreement to arbitrate, explaining: Under the FAA, arbitration is contractual by nature—a party cannot be required to... Read more »
Mere Guarantor Bound by Agreement’s Arbitration Clause
On November 10, 2020, the First Department issued a decision in Matter of Finkelman v. Hagshama Brooklyn 14 Park Slope Platinum, LLC, 2020 NY Slip Op. 06387, holding that a mere guarantor was bound by an agreement’s arbitration clause, explaining: Petitioner signed a joint venture agreement containing an arbitration clause in his representative capacity only... Read more »
Motion for Relief Under Article 76 Cannot be Made in an Earlier Action That Has Been Concluded
On September 23, 2020, Justice Masley of the New York County Commercial Division issued a decision in CPI Aerostructures, Inc. v. Air Indus. Group, 2020 NY Slip Op. 33249(U), holding that a motion for relief under Article 76 cannot be made in an earlier action that has been concluded, explaining: In the notice of motion... Read more »
Party Cannot Participate in Arbitration Without Challenging Jurisdiction in Court and Then Seek to Vacate Based on Lack of Jurisdiction
On October 9, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in Fava v. Morgan Stanley Smith Barney, Inc., 2020 NY Slip Op. 33358(U), holding that a party cannot participate in an arbitration without challenging its jurisdiction in court and later seek to vacate an award based on lack of... Read more »
When Arbitration is Governed by ICC Rules, It is For Arbitrator, Not the Court, to Decide Whether a Dispute is Arbitrable
On September 25, 2020, Justice Friedman of the New York County Commercial Division issued a decision in Lamorna Invs. Ltd. S.A. v. MG Capital Mgt. Residential Fund III L.P., 2020 NY Slip Op. 33162(U), holding that when an arbitration is governed by the ICC rules, it is for the arbitrator, not the court, to decide... Read more »
Court Stays Lawsuit Pending Resolution of Prior Pending Arbitration
On July 31, 2020, Justice Borrok of the New York County Commercial Division issued a decision in CMBSW Group, LLC v. Inverness Counsel, LLC, 2020 NY Slip Op. 32525(U), staying a lawsuit pending the resolution of a prior pending arbitration, explaining: The Defendants argue that a stay is appropriate because (i) the same conduct forms... Read more »
Court Upholds Arbitrator’s Sanctions Award
On July 21, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in Vitra, Inc. v. Ninety-Five Madison Co., L.P., 2020 NY Slip Op. 32389(U), confirming an arbitrator’s award of sanctions, explaining: In motion sequence six, Ninety-Five Madison moves to vacate the Second Partial Final Award and August 2019 Order. Leading... Read more »
Court Grants Petition Staying Arbitration Because Claimant Failed to Use Pre-Arbitration Dispute Resolution Process
On July 8, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Locascio v. Hobbs, Inc., 2020 NY Slip Op. 32226(U), granting a petition to stay an arbitration because of the claimant’s failure to use a mandatory pre-arbitration dispute resolution process, explaining: [Petitioner} correctly points out that a condition precedent... Read more »