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NO VACATING THIS ARBITRATION AWARD

ABSENT "CLEAR AND CONVINCING EVIDENCE" OF SOME IRREGULARITY, CHALLENGE WAS DENIED

After a law firm commenced an action against L.D. to recover its fees, the parties agreed to arbitrate the dispute. And when the arbitrator found in the lawyers' favor, L.D. brought a proceeding [pursuant to CPLR Article 75] to vacate the award.

Upon the the Nassau County Supreme Court's dismissal of the challenge, L.D. appealed, and the Appellate Division, Second Department, noted that the courts' review powers were “extremely limited.”

Under the governing statute, an arbitration award may only be vacated if “(1) the rights of a party were prejudiced by corruption, fraud or misconduct in procuring the award, or by the partiality of the arbitrator; (2) the arbitrator exceeded his or her power or failed to make a final and definite award; or (3) the arbitration suffered from an unwaived procedural defect.”

In the absence of “clear and convincing evidence” warranting the vacatur of outcome, the AD2 concluded that the court below had “properly denied” L.D,’s challenge and dismissed her case.

There’s no arbitrating that, either!

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DECISION

Matter of D.

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