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Archive for the ‘New York Arbitration Law (CPLR Article 75)’ Category

Attorney Fees and Arbitrability Addressed by New York Appellate Court

July 30th, 2019 Applicability of Federal Arbitration Act, Arbitrability, Arbitrability | Existence of Arbitration Agreement, Arbitration as a Matter of Consent, Arbitration Practice and Procedure, Attorney Fees and Sanctions, Authority of Arbitrators, Award Confirmed, Award Vacated, Awards, Choice-of-Law Provisions, Confirm Award | Attorney Fees, Confirm Award | Exceeding Powers, Confirm Award | Manifest Disregard of the Law, Confirmation of Awards, Contract Interpretation, Enforcing Arbitration Agreements, Exceeding Powers, FAA Chapter 1, Federal Arbitration Act Section 10, Grounds for Vacatur, Judicial Review of Arbitration Awards, Manifest Disregard of the Law, New York Arbitration Law (CPLR Article 75), Practice and Procedure, Vacate Award | 10(a)(4), Vacate Award | Arbitrability, Vacate Award | Attorney Fees, Vacate Award | Exceeding Powers, Vacate Award | Excess of Powers, Vacate Award | Existence of Arbitration Agreement, Vacate Award | Manifest Disregard of the Law, Vacatur No Comments »
Attorney Fees in Arbitration | TV

In Steyn v. CRTV, LLC (In re Steyn), ____ A.D. 3d ____, 2019 N.Y. Slip Op. 5341, at *1 (1st Dep’t July 2, 2019), New York’s Appellate Division, First Department decided a case falling under the Federal Arbitration Act (the “FAA”) that involved two challenges: one to an award of attorney fees on manifest disregard of the law grounds, and the other to an award that a nonsignatory obtained by joining the petitioner’s counterclaim.

The Court rejected the manifest-disregard challenge to the attorney fee award in favor of a signatory to the arbitration agreement, but held that the trial court should have vacated the award made in favor of a nonsignatory (which included both damages and attorney fees).

Background: Attorney Fee and Arbitrability Challenges

Terms and Conditions

The appeal arose out of a contract “dispute between Mark Steyn, a renowned author and television and radio personality, and CRTV, an online television network, currently known as BlazeTV, which features conservative commentators such as Glenn Beck and Phil Robertson.” 2019 N.Y. Slip Op. 5341, at *2. We’ll call Steyn the “Host” and CRTV the “Network.”

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Appellate Division, First Department Vacates Arbitration Award Because it Rewrote the Parties’ Collective Bargaining Agreement

July 13th, 2018 Appellate Practice, Arbitration Agreements, Arbitration as a Matter of Consent, Arbitration Practice and Procedure, Authority of Arbitrators, Awards, Labor Arbitration, Manifest Disregard of the Agreement, New York Arbitration Law (CPLR Article 75), New York State Courts Comments Off on Appellate Division, First Department Vacates Arbitration Award Because it Rewrote the Parties’ Collective Bargaining Agreement

yay-1663484-digitalNew York’s arbitration law (Article 75 of the CPLR), like the Federal Arbitration Act (the “FAA”), strictly limits award challenges premised on an arbitrator’s disregard of the parties’ contract. Arbitrator interpretations of the parties’ agreement cannot be second-guessed, even if the arbitrator has “disregarded” “the apparent, or even the plain, meaning of the words of the contract….” Maross Constr. v Central N. Y. Regional Transp. Auth., 66 N.Y 2d 341, 346 (1985) (quotations and citations omitted). To succeed, an award challenger must show that the  award “is irrational or clearly exceeds a specifically enumerated limitation on the arbitrator’s power.” Kowaleski  v. New York State Dep’t Correctional Serv., 16 N.Y. 3d 85, 91 (2010).

In City of New York v. District Council 37, ___ A.D. 3d ___, 2018 NY Slip Op 3220 (1st Dep’t May 3, 2018), the New York’s Supreme Court, Appellate Division, First Department set aside an award because it exceeded “a specifically enumerated limitation” on arbitral power: The parties’ agreement prohibited the arbitrator from adding to or modifying the agreement.

“The arbitrator’s decision,” said the Court, “rewrote the contract for the parties by expanding the number of workers entitled to the [collective bargaining agreement’s] assignment differential, when the contract expressly limited the differential to workers at a specific facility.” 2018 N.Y. Slip Op. 3220 at *1.

Acknowledging that “[a] provision in a contract that the arbitrator may not alter or modify a contract does not limit the arbitrator’s power to resolve the dispute by interpreting the contract based on his or her findings as to the parties’ intent[,]” the Court explained that “an award should be vacated where it is not derived from the contract, but from the deliberate and intentional consideration of matters outside the contract.” 2018 N.Y. Slip Op. 3220 at *1.

To learn more about vacating awards based on an arbitrator’s manifest disregard of the contract click here, here, here, here, here, and here.

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