Appellants Who Were Not Parties to Arbitration Waived Right to Challenge Award

On June 6, 2019, the First Department issued a decision in Matter of Capital Enters. Co. v. Dworman, 2019 NY Slip Op. 04494, holding that appellants who did not participate in an arbitration lacked standing to challenge the award, explaining:

Nonparty appellants, which are partners in petitioner, lack standing to challenge this arbitration, as they could not have brought the claims (in any forum) originally. Further, they waived any objection to the arbitration by failing to take any action, despite knowing of the arbitration and monitoring it from its inception.

(Internal citations omitted) (emphasis added).

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.