What's happening
This bill allows arbitration awards in New York to be vacated if the arbitrator showed a manifest disregard of the law.
Why it matters
Introduces “manifest disregard of the law” as a new ground to overturn arbitration decisions, empowering courts to review and potentially vacate awards if arbitrators blatantly ignore established legal standards.
Could make arbitration less final and more subject to judicial oversight, affecting both individuals and businesses who rely on arbitration for faster, binding conflict resolution.
May encourage arbitrators to more rigorously apply legal principles, potentially improving fairness for parties but also increasing the complexity, cost, and duration of arbitration by opening more awards to challenge.
Signals a shift in New York’s arbitration policy that could influence national trends, as New York is a major center for commercial arbitration and its rules often serve as a model elsewhere.
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Who cares
Headline styles
Let Courts Void Unlawful Arbitration
Plain English, a few words. Used as the page title.
Sponsors
15 Co-sponsors
2 Multi-sponsors
History
- Referred to codes
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.95
- Returned to assembly
- Died in senate
- Referred to judiciary
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.180
- Reported
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Courts Overturn Bad Arbitration
In Senate Committee · Codes · Sponsor Tony Avella
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1370
2017-2018 Regular Sessions
IN ASSEMBLY
January 11, 2017
Introduced by M. of A. WEINSTEIN, TITONE, DINOWITZ, SEAWRIGHT, SEPULVE- DA, COLTON, ABINANTI -- Multi-Sponsored by -- M. of A. CAHILL -- read once and referred to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to vacating arbitration awards on the basis of arbitrator disregard of the law
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (iv) of paragraph 1 of subdivision (b) of section 7511 of the civil practice law and rules is amended and a new subparagraph (v) is added to read as follows:
(iv) failure to follow the procedure of this article, unless the party applying to vacate the award continued with the arbitration with notice of the defect and without objection[.]; or
(v) the arbitrator evidenced a manifest disregard of the law in rendering the award.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02866-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.