American Intl. Specialty Lines Ins. Co. v Alllied Capital Corp.

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American Intl. Specialty Lines Ins. Co. v Alllied Capital Corp. 2017 NY Slip Op 32936(U) December 28, 2017 Supreme Court, New York County Docket Number: 656341/16 Judge: Barbara Jaffe Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. [*FILED: 1] NEW YORK COUNTY CLERK 01/03/2018 10:39 AM NYSCEF DOC. NO. 130 INDEX NO. 656341/2016 RECEIVED NYSCEF: 01/03/2018 SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: PART HON. BARBARA JAFFE Justice 12 -- -----------------------------------------------~----------------------------X AMERICAN INTERN A TI ON AL SPECIAL TY LINES INSURANCE COMPANY, INDEX NO. 656341116 MOT-ION DATE Petitioner, MOTION SEQ. NO. _ _ _ 0_0_1_ _ -v- ALLLIED CAP IT AL CORPORATION AND CI ENA CAPITAL LLC (F/K/A BUSINESS LOAN EXPRESS LLC), DECISION AND JUDGMENT Respondents. ------------------------------------------------------------------------X By amended notice of petition and petition, petitioner moves to vacate an arbitration award rendered against it. Respondents oppose. Petitioner argues that the award must be vacated given the erroneous finding of the arbitration panel that the JAMS Rules were inapplicable to the arbitration at issue. On March 25, 2015, before the arbitration was held, the Panel expressly decided that "the JAMS Comprehensive Rules do not govern the arbitration." Jn any event, the parties' arbitration agreement does not require the application of JAMS Rules. Petitioner thus fails to establish that · any error of fact or law was made by the Panel. Moreover, even had there been an error, it does not constitute a ground on which to vacate the award. (See Maller of New York Cent. Lines. LLC v Vitale, 82 AD3d 1244 [2d Dept 2011] [even if arbitrator misapplies substantive rules of law or makes factual error, award not vacated as exceeding arbitrator's power]: see also Matter o.f.Janis v New York State Div. of l!ous. & Community Renewal. 271 AD2d 878 [3d Dept 2000] [vacatur not warranted based on failure to comply with procedural provision of arbitration agreement]). The Panel was also not prohibited from reconsidering the partial final award, having determined that the award was not final, and to the extent that petitioner argues that the Panel erred in so concluding, it is not a sufficient ground on which to vacate the award. That the Panel may have erred in permitting the admission and consideration of certain evidence likewise constitutes an insufficient ground for vacatur, and petitioner has not established that the Panel's determination constitutes a manifest disregard of the law, rather than an erroneous factual or legal determination, which does not warrant vacatur. (See e.g.. Matter <~f R. C. Layne Constr. Inc .. 1 of 3 [*FILED: 2] NEW YORK COUNTY CLERK 01/03/2018 10:39 AM NYSCEF DOC. NO. 130 INDEX NO. 656341/2016 RECEIVED NYSCEF: 01/03/2018 [Stratton Oakmont, Inc.}, 228 AD2d 45 [1st Dept 1996] (arbitrator's evidentiary rulings not basis to vacate award, and court may not vacate award for erroneous interpretation oflaw]; see also Wien & Malkin LLP v Helmsley-Spear, Jnc.;6 NY3d 471 [2006], cert dismissed 548 US 940 [erroneous factual determination or manifest disregard of facts does not constitute manifest disregard of law]). According, it is hereby ORDERED and ADJUDGED, that the petition is denied; and it is further ORDERED and ADJUDGED, that pursuant to CPLR 321 l(e), the award is hereby confirmed. 12/28/2017 CHECK ONE: CASE DISPOSED GRANTED D NON-FINAL DIS DENIED GRANTED IN PA APPLICATION: SETTLE ORDER SUBMIT ORDER CHECK IF APPROPRIATE: DO NOT POST FIDUCIARY APPOINTMENT fl LED 2 2 of 3 0 OTHER D REFERENCE [*FILED: 3] NEW YORK COUNTY CLERK 01/03/2018 10:39 AM NYSCEF DOC. NO. 130 INDEX NO. 656341/2016 RECEIVED NYSCEF: 01/03/2018 MCCARTER & ENGLISH, LLP Attorneys for Respondents 245 Park Avenue New York, NY 10167 Tel: 212.609.6916 Fax: 212.609.6921 FILED AT JA'N-)~~i f& : 1 ~ ~ M N.Y., CO. CLK1S OFFICE 3 of 3

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