No Improper Influence; Arbitrator's Potential Retention by Affiliate of Party Was On Unrelated Matter and Was Disclosed

On January 2, 2018, the First Department issued a decision in Matter of Mexvalo, S. De R.L. De C.V. v. Desarrolladora Farallon S. De R.L. De C.V., 2018 NY Slip Op. 00031, refusing to vacate an arbitral award on the grounds of undue influence, explaining: "The record does not support respondent's contention that the arbitration award should be vacated on the ground of improper influence. The documentary evidence shows that the neutral's potential retention by an affiliate of petitioner on an unrelated matter, which was fully disclosed, occurred after the arbitral tribunal reached a decision on the merits." (Internal citations omitted).

Commercial litigation involves more than courts. Disputes often are--by agreement--decided by private arbitrators. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have a question regarding a dispute that is subject to an arbitration agreement.