What Every Business Owner Should Know About the Arbitration Process in New York

2 Flares Twitter 0 Facebook 0 Reddit 1 Pin It Share 1 LinkedIn 0 Google+ 0 Filament.io 2 Flares ×

The process of arbitration is becoming an increasingly popular method of alternative dispute resolution (ADR) for businesses. The main feature of arbitration that makes it a better choice for businesses than mediation is that the final decision is left to the arbitrator. Unlike divorce and many of the issues surrounding it, leaving the outcome to the parties involved is not always an effective strategy when the dispute is more likely to be based on contract disputes or other issues that are less likely to be agreed upon by the involved parties.


Arbitration Law

The arbitration process in New York is governed by New York state law as well as federal law. The state differs in that it has developed a unique set of laws that apply to arbitration. However, the federal law, precisely the Federal Arbitration Act (FAA), applies much more than state law in cases involving parties in different countries. Although the proceedings for the arbitration process are in New York, if foreign commerce or maritime transactions are involved, the laws of the FAA apply.

The quality and experience of the attorney and arbitrator you choose for the arbitration should be a primary concern. An in-depth understanding of the laws and processes involved in both domestic and international arbitration will ensure a flawless process and a more desirable outcome. Steven A. Certilman has served as a panelist or sole arbitrator in more than two hundred domestic and international commercial disputes.

Types of Commercial Disputes Frequently Settled with the Arbitration Process in New York

  1. Manufacturer and distributor disputes
  2. Commercial credit issues
  3. Non-competition
  4. Partnerships
  5. Shareholders
  6. Licensing disputes
  7. Breach of contract

Another difference between arbitration and mediation is that the former usually consists of legal counsel for each party in addition to the neutral arbitrator. It is also common to have a panel or tribunal of arbitrators instead of just one. As in any method of ADR, the neutral(s) should have in-depth experience as an arbitrator in the area, in this case New York, so that they can come to a resolution that is both legal and fair.

The Final Decision

There are multiple theories of damages that may be applied to the decision by the arbitrator including actual damages that one party proves were caused by the other party, special damages that do not result directly from a breach of contract, and specific performance in some cases. Arbitrators may award punitive damages in cases where FAA laws apply but not those that only involve New York law.

Once the damages have been accessed, the arbitrator creates a written award that specifies their findings and it is presented to the appropriate court according to the jurisdiction. In most cases, the award is legally binding.

Although the arbitration process in New York differs in some ways from the process in other states, the advantages it offers are the same. Through arbitration, you can get a faster, more affordable resolution to your dispute and keep the private details to yourself.


  1. https://eguides.cmslegal.com/pdf/arbitration_volume_I/CMS%20GtA_Vol%20I_NEW%20YORK.pdf
  2. http://www.ag.ny.gov/consumer-frauds/using-the-nys-arbitration-program

Leave A Reply

20 − seven =

2 Flares Twitter 0 Facebook 0 Reddit 1 Pin It Share 1 LinkedIn 0 Google+ 0 Filament.io 2 Flares ×