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Bill > S00086


NY S00086

NY S00086
Requires disclosure of possible conflicts; provides for the vacating of an arbitration award on the ground that the arbitrator was affiliated in any way with any party, or has a financial interest directly or indirectly in any party or in the outcome of the arbitration.


summary

Introduced
01/08/2025
In Committee
01/07/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the civil practice law and rules, in relation to grounds for vacating an arbitration award on the basis of partiality of the arbitrator

AI Summary

This bill amends the New York Civil Practice Law and Rules to enhance transparency and fairness in arbitration proceedings by establishing strict disclosure requirements for arbitrators. The legislation defines an arbitration as an alternative dispute resolution method where parties agree to be bound by a neutral third-party arbitrator's decision. The bill requires arbitrators to disclose any potential conflicts of interest before and during their appointment, including financial interests in the case outcome or existing relationships with parties, counsel, or witnesses. If an arbitrator fails to disclose a known, direct, and material interest or a substantial relationship with any party, they are presumed to act with evident partiality. Parties can object to an arbitrator's appointment or continued service based on disclosed facts, and courts may vacate an arbitration award if the arbitrator did not make required disclosures. The goal is to ensure the impartiality of arbitrators and maintain the integrity of the arbitration process by mandating full transparency about potential biases or conflicts that could influence the decision. The law applies to both existing and future controversies submitted to arbitration and takes effect immediately upon passage.

Committee Categories

Justice

Sponsors (1)

Last Action

REFERRED TO JUDICIARY (on 01/07/2026)

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