New York Court of Appeals

In the Matter of the Arbitration Between the Astoria Medical Group, Respondents, and Health Insurance Plan of…

March 29, 196211 N.Y.2d 128

Summary

The New York Court of Appeals reversed the lower court's order disqualifying the party‑appointed arbitrator, holding that under a tripartite arbitration agreement each side may name its own arbitrator even if the arbitrator has a relationship to the appointing party, and that the court lacks authority to remove such an arbitrator absent overt misconduct. The Court relied on the parties' contractual freedom and prior precedent, while Chief Judge Desmond dissented, arguing that the arbitrator's close ties to the insurer required disqualification.