A judge has vacated an arbitration award in a more than $42 million dollar dispute, faulting the arbitrators for exceeding their authority and for meeting on a Sunday—in violation of a little-known state law.
Pointing to Judiciary Law §5, which says “a court shall not be opened, or transact any business on Sunday” except for certain instances, Brooklyn Supreme Court Justice Edgar Walker wrote in Bauer v. Bauer, 507082/13, “Arbitration is a judicial proceeding and arbitrators perform a judicial function. As such, Judiciary Law §5 has been held to apply to arbitration proceedings. Accordingly, the arbitration proceedings and award herein are void upon the ground that at least one hearing was held on a Sunday.”
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