Petitioner Fails to Meet High Burden to Vacate Arbitral Award

On November 21, 2022, Justice Jamieson of the Westchester County Supreme Court issued a decision in Mullins v. Crowley, 2022 NY Slip Op. 33932(U), holding that a petitioner had failed to meet the high burden required to vacate an arbitral award, explaining:

It is well-settled that judicial review of arbitration awards is extremely limited. As such, an arbitration award must be upheld when the arbitrator offers even a barely colorable justification for the outcome reached. As the Appellate Division, Second Department, further explained in Matter of CEO Bus. Brokers, Inc.:

A party seeking to overturn an arbitration award on one or more grounds stated in CPLR 7511(b)(1) bears a heavy burden, and must establish a ground for vacatur by clear and convincing evidence. An arbitration award may be vacated on the ground that the arbitrator exceeded his or her power where the award violates a strong public policy, is irrational or clearly exceeds a specifically enumerated limitation on the arbitrator’s power. An award is irrational only where there is no proof whatever to
justify the award. In addition, pursuant to CPLR 7511(b)(1)(i), an arbitration award may be vacated on the ground that the rights of a party were prejudiced by misconduct in procuring the award.

Moreover, courts are bound by an arbitrator’s factual findings, interpretation of the contract and judgment concerning remedies. A court cannot examine the merits of an arbitration award and substitute its judgment for that of the arbitrator simply because it believes its interpretation would be the better one. Indeed, even in circumstances where an arbitrator makes errors of law or fact, courts will not assume the role of overseers to conform the award to their sense of justice. As such, an arbitrator’s award will be confirmed ‘if any plausible basis exists for the award.

Having reviewed the parties’ respective submissions on both motions, i.e., petitioners’ motion to confirm the Award and respondent’s cross-motion to vacate the Award and dismiss the Petition, the Court determines that the Arbitrator in issuing
the Award neither exceeded his power nor imperfectly executed it. Rather, the Record before the Court reflects that respondent simply disagrees with the conclusions made by the Arbitrator, and respondent has not met the heavy burden that is required to establish vacatur.

(Internal quotations and citations omitted).

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