A motion to confirm and a motion to vacate an award under the Federal Arbitration Act . . . identical twins?
From the “did you know” category. . . a motion to confirm and a motion to vacate an award under the Federal Arbitration Act . . . identical twins?
A federal judge in California on June 3 concluded that a motion to confirm and a motion to vacate an award under the FAA submit identical issues for judicial determination and granted CCP Sanluis L.L.C. and AIP-Sanluis L.L.C.’s motion to dismiss a motion to vacate as a motion to confirm.
Sounds confusing but U.S. Judge Richard J. Holwell of the Southern District of New York says it is logical.
He explained that a motion to confirm an arbitration award under § 9 of the FAA and the motion to vacate under § 12 of the FAA “are related.”
The judge based his reasoning on a case called Markowski v. Atzmon, (92 Civ. 2865 [LFO], 1994 U.S. Dist. LEXIS 4998, at *2 [D.D.C. 1994]).
“A motion for confirmation involves the same substantive consideration as a motion to vacate,” the judge held, quoting Markowski.
When a court denies a motion to vacate an arbitration award, “the court’s judgment has the effect of collateral estoppel; the parties cannot relitigate the validity of the award,” the judge held, pointing at a 43-year old case out of the U.S. District Court of Connecticut called Brown v.Bridgeport Rolling Mills Co., (245 F. Supp. 41, 45 [D. Conn. 1965], 245 F. Supp. at 45).
In Brown, the court found that in a proceeding to vacate an arbitration award, the “opposing parties [are] required to object upon all grounds which might be urged in support of a proceeding to confirm the award,” according to the judge.
Judge Holwell said it was sensible for the court to treat a party’s opposition to a motion to vacate as a request to confirm the award.
The companies specifically requested that their motion to dismiss the petition brought by Sanluis Developments L.L.C., Sanluis Investments L.L.C. and Sanluis Corporación S.A. de C.V. have the effect of a motion to confirm.
Is anyone aware of similar rulings in cases to confirm an international arbitration award?
Linked cases are available to lexis.com subscribers.