Vacating an arbitration award for partiality.

Practice point:  To vacate the award because of evident partiality under the Federal Arbitration Act (9 U.S.C. § 10[a][2], the movant must show that, given the totality of the circumstances, a reasonable person would have to conclude that an arbitrator was partial to one party.  While this showing requires something more than the mere appearance of bias, proof of actual bias is not required. Instead, a finding of partiality can be inferred from objective facts inconsistent with impartiality. While actual knowledge of a conflict can be dispositive of the evident partiality test, the absence of actual knowledge is not.

Student note:  The court will consider factors such as (1) the extent and character of the personal interest, pecuniary or otherwise, of the arbitrator; (2) the directness of the relationship between the arbitrator and the party he is alleged to favor; (3) the connection of that relationship to the arbitrator; and (4) the proximity in time between the relationship and the arbitration proceeding.

Case:  Matter of TCR Sports Broadcasting Holding, LLP v. WN Partner, LLC, NY Slip Op 05689 (1st Dep't July 13, 2017)

Here is the decision. 

Tomorrow's issue:  Determining the amount and duration of maintenance.

An unenforceable arbitration provision.

Practice point:  An arbitration provision which prohibits class, collective, or representative claims violate the National Labor Relations Act and is unenforceable.

Case:  Gold v. New York Life Ins. Co., NY Slip Op 05695 (1st Dep't July 18, 2017)

Here is the decision.

Tomorrow's issue: Vacating an arbitration award for partiality.

A claim for injuries caused by a domestic animal.

Practice point:  New York does not recognize a common-law negligence cause of action to recover damages for injuries caused by a domestic animal.  The settled law in New York is that a domestic animal's owner who either knows or should have known of the animal's vicious propensities will be held liable for the harm the animal causes as a result of those propensities.

Student note:  Once this knowledge is established, the owner faces strict liability.

Case:  Abrahams v. City of Mount Vernon, NY Slip Op 05699 (2d Dep't July 19, 2017)

Here is the decision.

Tomorrow's issue:  An unenforceable arbitration provision.

A hearing on an application for the award of attorney's fees.

Practice point:  The plaintiff waived his right to a hearing on the defendant's application by agreeing that, although "each party retains the right to appeal any order of this court with respect to counsel fees," the parties' respective applications for an award of an attorney's fee would be "done simultaneously without a right to oppose or reply."

Case:  Fishman v. Solomon, NY Slip Op 05581 (2d Dep't July 12, 2017)

Here is the decision.

Tomorrow's issue:  A claim for injuries caused by a domestic animal.

A breach of contract claim.

The law office-defendant, an LLC, opened an IOLA account with the bank-plaintiff and deposited a purported client's cashier's check into the account. Shortly thereafter, the client, through the law office, directed that the majority of the funds be wired to two international parties. Although the bank's business deposit accounts brochure says that a transfer of more than $5,000 out of a new account will be made only after nine business days, the money was wired out of the account before the ninth business day, after the bank's employees had verified by telephone with the clearinghouse bank that the check had cleared. A few days later, it was discovered that the check was fraudulent.

Practice point:  The breach of contract claim was dismissed as against the lawyer because he is not the named customer on the bank account, and there is no basis for holding him liable in the documents that comprise the application to open the account. The negligence cause of action also was dismissed as against him. Limited Liability Company Law § 1205(a) makes an LLC's member liable for negligence in the furnishing of services, that is, malpractice. Here, however, neither the lawyer nor the LLC were providing personal services to the bank; they were acting as its customer. Additionally, there are no allegations otherwise supporting a personal claim against the lawyer based on piercing the corporate veil.

Case:  Metropolitan Commercial Bank v. Levy, NY Slip Op 05505 (1st Dep't July 6, 2017)

Here is the decision. 

Tomorrow's issue:  A hearing on an application for the award of attorney's fees.

Forum selection clauses.

Practice point:  Where a contracting party has agreed to submit to the jurisdiction of a court, that party is precluded from disputing the court's jurisdiction on the grounds of forum non conveniens.

Case:  Honeywell Intl. Inc. v. ARC Energy Servs., Inc. NY Slip Op 05686 (1st Dep't July 13, 2017)

Here is the decision. 

Tomorrow's issue:  A breach of contract claim.

An alleged breach of the employer's fiduciary duty.

Practice point:  An employer-employee relationship, without more, does not give rise to a fiduciary duty.

Case:  Brook v. Peconic Bay Med. Ctr., NY Slip Op 05681 (1st Dep't July 13, 2017)

Here is the decision.

Tomorrow's issue:  Forum selection clauses.

An emailed settlement agreement.

The Appellate Division reversed the motion court and granted defendant's motion to enforce the settlement agreement. The emails between the parties' counsels counsel sufficiently set forth an enforceable agreement to settle plaintiffs' claims, and plaintiff's counsel, who had authority to bind the plaintiff, accepted the defendant's offer..

Practice point:  Counsel typed his name at the end of the email accepting defendants' offer, which satisfied CPLR 2104's requirement that settlement agreements be in a writing subscribed by the party or the party's attorney.

Case:  Jimenez v. Yanne, NY Slip Op 05677 (1st Dep't July 13, 2017)

Here is the decision.

Tomorrow's issue:  An alleged breach of the employer's fiduciary duty.

An affidavit submitted in oppositon to summary judgment.

Practice point:   The motion court may consider the affidavit even though it is notarized out-of-state and lacks a certificate of conformity, pursuant to CPLR 2309(c).

Case:  Redlich v. Stone, NY Slip Op 05676 (1st Dep't July 13, 2017)

Here is the decision.

Tomorrow's issue:  An emailed settlement agreement.

Motions to compel or stay arbitration.

Practice point:  On the motion, the court will first determine whether the parties have agreed to submit their disputes to arbitration, and, if so, whether this dispute comes within the scope of their agreement.  The court will apply ordinary state-law principles that govern the formation of contracts.

Case: Degraw Constr. Group, Inc. v. McGowan Bldrs., Inc., NY Slip Op 05580 (2d Dep't July 12, 2017)  

Here is the decision.

Monday's issue:  An affidavit submitted in opposition to summary judgment.

Documentary evidence and dismissal.

Practice point:  A motion to dismiss a complaint based upon documentary evidence under CPLR 3211(a)(1) may be granted only where the documentary evidence utterly refutes the plaintiff's factual allegations, conclusively establishing a defense as a matter of law. To qualify as documentary evidence for the purpose of a motion to dismiss, the evidence must be unambiguous and of undisputed authenticity. Affidavits, deposition testimony, and letters are not considered documentary evidence within the meaning of the statute. 

Case:  Board of Mgrs. of 100 Congress Condominium v. SDS Congress, LLC, NY Slip Op 05414 (2d Dep't July 5, 2017) 

Here is the decision. 

Tomorrow's issue:  Motions to compel or stay arbitration.