PA412 Alternative Dispute Resolution: New York Courts and ADR
Answer:
To
Maria
Re: New York Courts and Arbitration Dispute Resolution
Dear Maria,
The courts in New York strongly favour Arbitration and mediation. The matters related to arbitration are brought before the judges of the US Federal Court or before the special commercial division of the State court in New York. The law in New York strongly supports arbitration as the courts recognize that New York plays a significant role being the hub of business and financial transactions and that the role is strengthened by supporting international arbitration and its reliability on its international commercial arbitration.
In New York, the law requires that in the event of any doubt regarding the scope of arbitration, the same shall be resolved in favour of arbitration; the court voluntarily enforces arbitration agreements and induces the parties to seek arbitration. The US Supreme Court has held that as long as the decision of the arbitrator is concerned with the construction of the contract, there is no need for the courts to overrule the decision merely because of the difference in the interpretation of contract between the court and the arbitrator. The court shall be sustained no matter how good or bad it is.
In CB Richard Ellis, Inc. v. American Envtl. Waste Mgmt., 1998, it was held that if the parties are unable to resolve their disputes through ADR, then such dispute shall become subject to binding arbitration. In Dean Witter Reynolds Inc. v. A. Lamar Byrd, the court held that arbitration claims shall be heard if the parties are contractually obligated to do so and parallel claims made in the federal court shall be heard by the Federal court.
Reference list
CB Richard Ellis, Inc. v. American Envtl. Waste Mgmt., 1998 U.S. Dist. LEXIS 20064
Dean Witter Reynolds Inc. v. A. Lamar Byrd 470 U.S. 213 105 S. Ct. 1238, 84 L. Ed. 2d 158
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