MATTER OF MORGAN GUARANTY TRUST COMPANY OF NEW YORK v. Solow Building Co., LLC

• Decision Date: 30 January 2001
• Citation: 279 A.D.2d 431,720 N.Y.S.2d 69
• Parties: In the Matter of MORGAN GUARANTY TRUST COMPANY OF NEW YORK, Appellant,<BR>v.<BR>SOLOW BUILDING CO., L. L. C., Respondent.
• Court: New York Supreme Court — Appellate Division

279 A.D.2d 431

720 N.Y.S.2d 69

In the Matter of MORGAN GUARANTY TRUST COMPANY OF NEW YORK, Appellant,

v.SOLOW BUILDING CO., L. L. C., Respondent.

Decided January 30, 2001.

Concur — Williams, J.P., Mazzarelli, Lerner and Buckley, JJ.

The original arbitrator appointed on behalf of respondent, Robert Von Ancken, failed to reveal his close involvement with petitioner's counsel on prior arbitrations and the fact that he was scheduled to testify against respondent in an unrelated matter. "[T]he failure of an arbitrator to disclose facts which reasonably may support an inference of bias is grounds to vacate the award under CPLR 7511" (Matter of J. P. Stevens & Co. [Rytex Corp.], 34 NY2d 123, 125; see also, Matter of Milliken Woolens [Weber Knit Sportswear], 11 AD2d 166, affd 9 NY2d 878). That Von Ancken ultimately resigned does not remove the taint to the process since he participated in choosing the "neutral" third arbitrator, who ultimately ruled against respondent and who was involved in a highly contentious relationship with respondent's chosen arbitrator. Accordingly, Supreme Court properly vacated the arbitration award. "[I]t is imperative that the integrity of the process, as opposed to the correctness of the individual decision, be zealously safeguarded" (Matter of Goldfinger v Lisker, 68 NY2d 225, 231).

We have examined petitioner's remaining contentions and find them unavailing.