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Review Criteria for Arbitration Award Explained; Contract Entered Into by Unlicensed Interior and Architectural Design Business Did Not Violate Public Policy

In a full-fledged opinion by Justice Mazzarelli, the First Department upheld an arbitrator’s award which had been confirmed by Supreme Court.  The issue at the heart of the case was whether the fact that the petitioner’s interior and architectural design business did not have a license to practice architecture warranted a finding that a contract entered into by the petitioner with the respondents violated public policy (such that the respondents did not have to pay for services rendered).  Justice Mazzarelli, after collecting relevant cases, determined there was no violation of public policy. The petitioner employed a licensed architect and periodically used a licensed and registered architect as an outside consultant.  In explaining the court’s role in reviewing an arbitrator’s award, the First Department wrote:

Because of the great degree of deference afforded to arbitration awards, the available grounds for vacating them are extremely limited. Mere errors of law or fact reflected in an arbitration award are insufficient for a court to overturn it, since “the courts should not assume the role of overseers to mold the award to conform to their sense of justice” …. A court may only disturb the award “when it violates a strong public policy, is irrational or clearly exceeds a specifically enumerated limitation on an arbitrator’s power” ….  Matter of McIver-Morgan, Inc, v Dal Piaz, 2013 NY Slip Op 03411, 1st Dept, 5-9-13

 

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