In Daesang v. The NutraSweet Co. (May 2017), the New York State Supreme Court partially vacated a $100 million International Chamber of Commerce (ICC) arbitral award on the grounds of manifest disregard of the law. Justice Charles E. Ramos, who is designated to hear all international arbitration disputes before the Commercial Division of New York County, granted NutraSweet’s motion to vacate an arbitral award in favor of the South Korean food group Daesang. Justice Ramos found that the arbitral tribunal had manifestly disregarded the law when it dismissed some of NutraSweet’s counterclaims, calling the tribunal’s failure to consider the merits of one counterclaim an “egregious dereliction of duty.” The decision has strategic implications for how parties will invoke the doctrine of manifest disregard of the law when contesting future arbitral awards. The decision could also potentially affect New York’s reputation as a seat for the reliable enforcement of international arbitral awards, and as a venue with courts that respect and support this alternative dispute resolution process.

Originally published in New York Law Journal - August 7, 2017.