Bill > A05671

This bill amends the New York Civil Practice Law and Rules to expand the grounds for vacating (overturning) an arbitration award. Currently, parties can request to nullify an arbitration decision if there are procedural errors, but this bill adds a new provision allowing courts to vacate an award if an arbitrator shows a "manifest disregard of the law" when rendering the decision. This means that if an arbitrator clearly ignores or misapplies established legal principles in a way that is not merely an error but a deliberate dismissal of the law, a court can invalidate the arbitration award. The new provision provides an additional legal mechanism for challenging arbitration outcomes that are perceived as fundamentally unjust or legally incorrect. The amendment will take effect 180 days after becoming law, giving stakeholders time to understand and prepare for the new standard of review for arbitration awards.

Justice

https://www.nysenate.gov/legislation/bills/2025/A5671