The recent decision in Nachmani v. By Design, LLC, issued by the First Department Appellate Division of New York, has potentially undermined the effect of arbitration clauses commonly used to designate an arbitration organization as the administrator of an arbitral dispute. As a result of Nachmani, arbitration provisions should not merely provide that disputes under a contract are to be governed by the rules of a particular arbitration organization; they should also explicitly state that the arbitral dispute is to be “administered” by that organization.
Please see full publication below for more information.