Arbitral Award Vacated Based on Failure to Disclose that Arbitrator Was Party's Fact Witness and Was Under Indictment

On April 26, 2018, the First Department issued a decision in Policy Administration Solutions, Inc. v. QBE Holdings, Inc., 2018 NY Slip Op. 02878, affirming the dismissal of an arbitral award for failure to disclose that an arbitrator was a party's fact witness and was under indictment, explaining:

Defendants' failure to disclose to the arbitrator that one of their testifying fact witnesses who was known to be under criminal indictment had agreed to plead guilty to charges in the indictment days before he testified at the arbitration hearing warranted a finding that the arbitration award was procured by misconduct and that further proceedings before the arbitrator are necessary.

(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.