Court Lacks Jurisdiction To Hear Motion To Vacate Arbitration Decision That Denied Withdrawal Of Arbitrable Claim

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A federal district court has dismissed a motion to vacate an arbitration decision denying a party’s request to unilaterally withdraw a claim that was subject to a pending arbitration. Finding the arbitration decision was not final, and did not fall within any exception to the finality requirement, the court held it lacked jurisdiction to consider the motion to vacate it. The court also rejected application of the collateral order doctrine which, if applicable, would justify the court’s jurisdiction to hear the motion. That doctrine is reserved for only a few substantial interests, such as defenses of presidential immunity and double jeopardy. No such substantial interest was shown by the argument that consideration of the order could avoid unnecessary legal expenses. Bailey Shipping Ltd. v. American Bureau of Shipping, et al., Case No. 12-CV-5959 (USDC S.D.N.Y. Mar. 28, 2014).

Topics:  Arbitration, Binding Arbitration, Jurisdiction, Motion to Vacate

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Procedure Updates, General Business Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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