Arbitration award vacated for the umpire’s undisclosed solicitation of work from the other side

Holding The Appellate Division reversed the lower court’s confirmation of an arbitration award, vacating it due to the neutral umpire’s partiality and the resulting prejudice to the tenants. The umpire’s undisclosed communications with opposing counsel regarding a separate paid arbitration role created an appearance of impropriety that tainted the subsequent procedural rulings and final award.

Why it matters

The decision clarifies the standard for vacating arbitration awards under CPLR 7511, distinguishing it from the Federal Arbitration Act standard applied in U.S. Elecs., Inc. v Sirius Satellite Radio, Inc.

It establishes that an arbitrator’s undisclosed solicitation for other paid work by opposing counsel constitutes partiality that can prejudice the arbitral process even if the arbitrator ultimately declines the offer.

The court’s words

the umpire created an appearance of impropriety when he directly communicated with the landlord's counsel about a paid offer to serve as a neutral umpire in the Durst matter

2026 NY Slip Op 05230, at the official text

the umpire's subsequent attempt to remedy this issue with a disclosure to the tenants failed to cure his misconduct

2026 NY Slip Op 05230, at the official text

the umpire's disputed prehearing determinations cannot be divorced from the taint that arose from his undisclosed communications with the landlord's counsel

2026 NY Slip Op 05230, at the official text