Justia Arbitration & Mediation Opinion Summaries

Petitioner sought to vacate a unanimous arbitration award in favor of Sirius arising out of a breach of contract dispute. Petitioner, which had a non-exclusive agreement with Sirius to distribute radio receivers, claimed that the chairman of the arbitration panel failed to disclose relationships of interest that affected the impartiality and propriety of the arbitration process. The court adopted the Second Circuit's reasonable person standard and held that the Appellate Division erred by imposing upon petitioner a "burden of proving by clear and convincing evidence that any impropriety or misconduct of the arbitrator prejudiced its rights." The court held, however, that the Appellate Division correctly determined that there was no basis to vacate the arbitration award. Accordingly, the order was affirmed. View "U.S. Electronics, Inc. v Sirius Satellite Radio, Inc." on Justia Law