Chef Chloe, LLC v. Wasser

• Decision Date: 29 January 2019
• Docket Number: 8243,Index 653041/16
• Parties: CHEF CHLOE, LLC, etc., Plaintiff–Appellant, v. Samantha WASSER, et al., Defendants, ESquared Hospitality LLC, Defendant–Respondent, CCSW LLC, Nominal Defendant. ESquared Hospitality LLC, etc., Counterclaim and Third–Party Plaintiff–Respondent, v. Chef Chloe, LLC, Counterclaim Defendant–Appellant, Chloe Coscarelli, Third–Party Defendant–Appellant.
• Court: New York Supreme Court — Appellate Division

168 A.D.3d 610
93 N.Y.S.3d 15

CHEF CHLOE, LLC, etc., Plaintiff–Appellant,
v.
Samantha WASSER, et al., Defendants,

ESquared Hospitality LLC, Defendant–Respondent,

CCSW LLC, Nominal Defendant.

ESquared Hospitality LLC, etc., Counterclaim and Third–Party Plaintiff–Respondent,
v.
Chef Chloe, LLC, Counterclaim Defendant–Appellant,

Chloe Coscarelli, Third–Party Defendant–Appellant.

8243
Index 653041/16

Supreme Court, Appellate Division, First Department, New York.

ENTERED: JANUARY 29, 2019

Robins Kaplan LLP, New York (Ronald J. Schutz of counsel), for appellants.

Pryor Cashman LLP, New York (Philip R. Hoffman of counsel), for respondent.

Renwick, J.P., Richter, Mazzarelli, Webber, Kern, JJ.

93 N.Y.S.3d 16

168 A.D.3d 610

Plaintiff seeks vacatur or modification of the arbitration award on the sole ground that the arbitrator exceeded her authority by granting relief that was not specifically demanded in defendant's statement of claim (see CPLR 7511[b], [c] ; Frankel v. Sardis, 76 A.D.3d 136, 139, 904 N.Y.S.2d 18 [1st Dept. 2010] ). The arbitrator found that plaintiff could be terminated as Service Member from nominal defendant CCSW LLC "for cause," as that term was defined in the parties' operating agreement. The record demonstrates that the parties submitted evidence, including testimony, and advanced arguments concerning the issue of for-cause termination and that defendant described the conduct by plaintiff that supported for-cause termination in detailed allegations in the statement of claim and in the answer with counterclaims that it had filed in this action, which was annexed to the statement of claim. In the operating agreement, the parties had agreed that all disputes concerning the terms of the agreement would be submitted to arbitration and that they would be bound by the arbitrator's award. "The language of arbitration demands is not subject to the strict standards of construction applicable to formal court pleadings" ( id. at 140, 904 N.Y.S.2d 18 ). To hold that the arbitrator was...