On April 9, 2026, Justice Patel of the New York County Commercial Division issued a decision in Dilascia v. Lemonis, 2026 NY Slip Op. 31505(U), holding that a court may not grant pre-award interest if the arbitrator declines to do so, explaining:
The Arbitrator did not address prejudgment interest in the Award. Pursuant to New York law, the confirming Court lacks discretion to award prejudgment interest in an arbitration award, given that arbitrators had authority to award preaward interest, and made no such award. Rather, upon confirmation of an arbitrator’s award, interest should be provided from the date of the award.
Petitioners argue that the parties’ choice of law will be given effect unless to do so would conflict with the Federal Arbitration Act (“FAA”). Petitioners argue that here, a conflict exists with respect to an award of prejudgment interest and, therefore, the FAA controls.
The Court declines to engage in a choice-of-law analysis with respect to prejudgment interest. Petitioners concede that absent a grant of prejudgment interest in the Award, New York law prohibits the Court from adding such relief. If, however, the Court applies federal law, the Court possesses broad discretion in awarding prejudgment interest and should consider (i) the need to fully compensate the wronged party for actual damages suffered, (ii) considerations of fairness and the relative equities of the award, (iii) the remedial purpose of the statute involved, and/or (iv) such other general principals as are deemed relevant by the court. As reasoned supra, the Court defers to the Arbitrator and adopts his reasoning that the LDP provides full and fair compensation to Petitioners. Additionally, the contracting parties could have included a provision for prejudgment interest when drafting the Agreement. The Court will not speculate as to the intent of the drafting parties and exercises its discretion to enforce the Agreement as written.
Petitioners request that if the Court only awards interest from the date of the award, they submit it would then be fair and consistent to award post-judgment interest at the New York rate of nine percent pursuant to CPLR § 5004. Accordingly, the Court grants post-judgment interest from the date of the award at the New York statutory rate.
(Internal quotations and citations omitted).