In re the Arbitration between Milliken Woolens, Inc. & Weber Knit Sportswear, Inc.

20 Misc. 2d 504, 192 N.Y.S.2d 408, 1959 N.Y. Misc. LEXIS 2918
CourtNew York Supreme Court
DecidedOctober 5, 1959
StatusPublished
Cited by2 cases

This text of 20 Misc. 2d 504 (In re the Arbitration between Milliken Woolens, Inc. & Weber Knit Sportswear, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Arbitration between Milliken Woolens, Inc. & Weber Knit Sportswear, Inc., 20 Misc. 2d 504, 192 N.Y.S.2d 408, 1959 N.Y. Misc. LEXIS 2918 (N.Y. Super. Ct. 1959).

Opinion

Matthew M. Levy, J.

When this matter — a motion by Milliken to confirm, and a motion by Weber Knit to disaffirm, an arbitration award — came before me initially, a number of issues were raised by Weber Knit seeking to cast doubt upon the validity of the award in question. Among those issues was the claimed disqualification of two of the three arbitrators. That issue, in all of its facets, I directed to be heard at Trial Term, and I held ultimate determination of the motions in abeyance pending its resolution in that forum. A decision having been rendered by the trial court (Mr. Justice Spectob), to the effect that the contentions of Weber Knit as to disqualification were baseless and without merit”, the original motions are now presented to me for final disposition.

At the outset let me say that I shall not, although urged by Weber Knit to do so, review the decision of my learned colleague, nor undertake to determine whether a new hearing should be held. (Cf. Fried v. Lakeland Hide & Leather Co., 14 Misc 2d 305, 308.) If, as is claimed, error was committed by the trial court upon the hearing or in the result reached, or if additional circumstances (discovered for the first time at the hearing) require the disqualification of the arbitrators, such matters, in the event they are to be pressed, are not for me to resolve, but should, if counsel are so advised, be submitted to my learned colleague who presided at the trial.

Also, let me say that I deem myself empowered, notwithstanding Milliken’s urging to the contrary, to vacate the award if relevant facts are presented and justifiable bases exist therefor— aside from the matter of claimed disqualification. For all that was referred to Trial Term for disposition was the issue of the claimed disqualification of the arbitrators, and, in making [506]*506that direction, I did not denude myself of jurisdiction to pass upon any other grounds asserted for the disaffirmance of the award.

Weber Knit attacks the award, in that aspect of the case, because, it is claimed, the arbitrators improperly conducted the taking of proof. It is unnecessary to set forth the numerous objections raised in that respect. Suffice it to say that in the present context of the record — absent disqualification in limine or by virtue of proved bias or prejudice in the conduct of the proceedings (see Matter of Nadalen Mills [Barbizon Knitwear Corp.], 206 Misc. 757; Civ. Prac. Act, § 1462, subd. 2) —none of the objections requires the award to be vacated. I shall here discuss only those points most strenuously asserted by Weber Knit in its attack, and in doing so I want to make it clear that I have not overlooked any of its many other contentions.

First, Weber Knit contends that the arbitrators refused to consider pertinent and material evidence. Of course, if that were so, the award cannot stand (Civ. Prac. Act, § 1462, subd. 3). But the record upon which the objector relies fails, on the one hand, to show that the evidence in question was relevant, and, on the other, that there was refusal to receive it.

Rule 30 of the Commercial Arbitration Rules of the American Arbitration Association — which is one of the rules to which the parties agreed to be bound in this arbitration proceeding — provides that [w]hen the Arbitrator is authorized by law to subpoena witnesses or documents, he may do so upon his own initiative or upon the request of any party. The Arbitrator shall be the judge of the relevancy and materiality of the evidence offered and conformity to legal rules of evidence shall not be necessary.” In pursuance of this rule, and at the instance of Weber Knit, a subpoena duces tecum was issued by the arbitrators. Thereafter and during the course of the hearings the arbitrators refused to order the production of the books and records specified in the subpoena (cf. Matter of Re-Anne Mfg. Corp. [Rosenblatt], 1 Misc 2d 717). It is that ruling on which Weber Knit relies in urging that the award be nullified. I hold that the complaint is insufficient upon which to base the relief requested.

In my view, the issuance of the subpoena, without more, does not necessarily show that the documents subpoenaed are pertinent and material in the sense that the arbitrators’ refusal to require their production would invalidate a subsequent award. And it has not been otherwise shown that the records subpoenaed were relevant. It is elementary that ‘ [m] ere refusal to receive [507]*507evidence is not sufficient to vacate; the evidence excluded must be shown to be clearly relevant to the disputed issue ” (Matter of John Post Constr. Corp. [Good Humor Corp.], 9 Misc 2d 392, 393).

Moreover, as has been pointed out, there was no refusal to receive the evidence, for none was proffered. The distinction is well noted in the case of Matter of Juilliard & Co. [Baitch & Castaldi, Inc.] (2 Misc 2d 753). I quote from the opinion at some length. In confirming an award of arbitration and denying the motion to vacate it, the court said, at page 754: The first ground is based upon the arbitrators’ refusal to direct petitioner to produce certain records. Relevancy of these records was disputed and their production at the outset of the hearings refused until their relevancy was made to appear by the evidence. Evidently the arbitrators remained unconvinced as the hearing developed. * * The facts in issue were evidently fully explored by both sides, and the request for record production appears to be a matter within the discretion of the arbitrators in the same sense in which a trial justice is empowered to decide what records a party should be compelled to produce. This is not a refusal to hear pertinent evidence which a party offers for consideration to arbitrators, but simply a refusal to compel the adverse party to produce certain records which are not shown to be clearly relevant to the disputed issue. Adoption of respondent’s views would open the door to all kinds of motions to vacate awards based on refusal of arbitrators to grant procedural motions or production of an adversary’s records requested on the slightest pretext. Since awards may not be vacated even for fundamental errors of law or fact, they certainly should not be set aside for mere refusal to compel a party to produce records. It is misconduct, and not mistake of judgment, which permits the court to vacate an arbitration award, and, surely, that has not been shown here.”

Similarly, in the case at bar, even assuming that production of the records should have been enforced and the data obtained placed in evidence, the failure to do so ‘1 in the light of the facts * * * was [but] an error of judgment on the part of the arbitrators, not subject to successful attack in a judicial proceeding ” as a basis for impugning the award (Matter of John Post Constr. Corp. [Good Humor Corp.], 9 Misc 2d 392, 393, supra). Unlike the situation in Matter of Seedman [Lockrey] (1 A D 2d 656), a precedent strongly relied upon by Weber Knit, the arbitrators in the instant case ruled that it was not shown that the records subpoenaed were material. It is obvious, too, [508]*508that Weber Knit could have obtained the desired information, if it thought such data were needed and relevant, from other sources.

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20 Misc. 2d 504, 192 N.Y.S.2d 408, 1959 N.Y. Misc. LEXIS 2918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-milliken-woolens-inc-weber-knit-nysupct-1959.