In a proceeding pursuant to CPLR Article 75 to vacate an arbitration award, the Petitioner appealed from a judgment of the Supreme Court denying his petition and dismissing the proceeding. The Appellate Division affirmed the Supreme Court's judgment, with costs.
Noting that judicial review of an arbitration award "is extremely limited", the Appellate Division, citing Hackett v Milbank, Tweed, Hadley & McCloy, 86 NY2d 146, explained that under CPLR 7511, "an [arbitration] award may be vacated only if (1) the rights of a party were prejudiced by corruption, fraud or misconduct in procuring the award, or by the partiality of the arbitrator; (2) the arbitrator exceeded his or her power or failed to make a final and definite award; or (3) the arbitration suffered from an unwaived procedural defect".
"An arbitrator 'exceed[s] [his or her] power within the meaning of the CPLR only when [he or she] issue[s] an award that violates a strong public policy, is irrational or clearly exceeds a specifically enumerated limitation on the arbitrator's power'", citing American Intl. Specialty Lines Ins. Co. v Allied Capital Corp., 35 NY3d 64.
Further, a party seeking to overturn an arbitration award "bears a heavy burden and must establish a ground for vacatur by clear and convincing evidence" (See Matter of Board of Educ. of the Yonkers City Sch. Dist. v Yonkers Fedn. of Teachers, 185 AD3d 811).
The Appellate Division opined that in this action Petitioner "failed to show, by clear and convincing evidence, a basis for vacating the arbitration award pursuant to CPLR 7511."
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