Arbitration Decision Vacated as Irrational

Vacating an arbitration award is typically a tall order. For that reason, without a good basis for a challenge, arbitration decisions are often confirmed. A recent Second Department decision is notable not just for vacating the arbitration award but doing so because it found the award to have been irrational, a doubly tall order.

The Court first reviewed the “extremely limited” basis which could serve to vacate an arbitration award. As relevant to this case, the Court vacated, finding, “that the arbitration award was irrational” because its basis was without any “‘proof whatever to justify the award.’” In this case, because the claimants were not seeking what was awarded, the arbitration award was irrational and could not stand.

Matter of County of Nassau v. Nassau County Sheriff’s Corr. Officers’ Benevolent Assn.
2024 Slip Op 00069