Last November, the New York Times ran three front page stories and a follow-up editorial criticizing big business for “forcing” consumers and employees to arbitrate disputes in forums that are stacked against them. In his February 8, 2016 piece for the New York Law Journal, Neal M. Eiseman writes that, as a result of this attention, legislation may be enacted that will take away the many benefits arbitration offers to businesses who routinely select it as their preferred way to resolve their disputes as between themselves.
There is now proposed legislation in the New York State Legislature to amend CPLR §75 (i) to require the New York State Attorney General to become involved in all arbitrations; (ii) to require an arbitrator’s award to include findings of fact and conclusions of law; and (iii) to add a new statutory ground permitting the courts to vacate arbitration awards when the arbitrator evidences a “manifest disregard of the law.”
Eiseman’s piece warns that unless the Legislature’s efforts to protect consumers and employees are limited in scope, it will a devastating effect on “business to business” arbitrations.
Read Eiseman’s full piece, available here.