In an earlier article, we detailed the heavy burden faced by counsel seeking to overturn or vacate an arbitration award under New York law.1 To summarize, the New York courts drastically limit their review of arbitration awards, serving the goals of efficiency and judicial economy.2 The limited grounds for vacatur or modification under the New Civil Practice Law and Rules are: “(1) corruption, fraud, or misconduct in procuring the award; (2) partiality of the arbitrator; (3) the arbitrator exceeded his power or imperfectly executed it; (4) failure to follow the procedures of Article 75 of the CPLR.”3
As with New York law, the Federal Arbitration Act (FAA) gives arbitrators tremendous deference in federal courts, and grounds for vacatur or modification of arbitral awards are just as limited. Indeed, the burden placed upon parties seeking vacatur often proves too difficult to overcome. This article discusses the pitfalls of arbitration, focusing on the treatment of arbitration awards under the FAA, as compared to relevant New York law.
FAA and New York’s Analog
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