On April 11, 2023, the First Department issued a decision in Matter of Vornado 330 W. 34th St., L.L.C. v. 330 W. 34th SPE LLC, 2023 NY Slip Op. 01879, holding that a party had waived the right to challenge an arbitrator for bias, explaining:
The neutral arbitrator in this proceeding was simultaneously serving as a party arbitrator in an unrelated landlord-tenant arbitration proceeding, wherein the landlord’s expert in this proceeding was the neutral arbitrator in the other arbitration proceeding. Moreover, tenant’s counsel in this proceeding was retained as landlord’s counsel in the other proceeding. Although the tenant in this proceeding was allegedly unaware of the aforementioned potential conflicts of the neutral arbitrator in this proceeding until after the arbitration award was issued, tenant’s counsel in this proceeding possessed that knowledge pre-award.
The court correctly confirmed the arbitration award. Tenant’s counsel knew of the arbitrator’s dealings in the unrelated landlord-tenant arbitration proceeding, and, as tenant’s agent, counsel’s knowledge of the arbitrator’s apparent conflict can be imputed to tenant. The information that tenant’s counsel had regarding the arbitrator’s apparent conflicts was within the scope of counsel’s agency to impart to tenant, and counsel could have advised tenant as to the same. Based on the foregoing, tenant waived its right to challenge the award on the grounds of arbitrator bias.
(Internal citations omitted).