New York S 86: Relates to providing for vacation of an arbitration award on the ground that the arbitrator was affiliated with a party, or has a financial interest in a party or the outcome

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S00086 Summary:

BILL NOS00086A

&nbsp

SAME ASSAME AS A01219-A

&nbsp

SPONSORSEPULVEDA

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add Art 75 §7500, §7505-a, amd §7501, CPLR

&nbsp

Requires disclosure of possible conflicts of an arbitrator; provides for the vacating of an arbitration award on the ground that the arbitrator was affiliated in any way with any party, or has a financial interest directly or indirectly in any party or in the outcome of the arbitration.

Go to top S00086 Actions:

BILL NOS00086A

&nbsp

01/08/2025REFERRED TO JUDICIARY

01/07/2026REFERRED TO JUDICIARY

05/12/2026AMEND AND RECOMMIT TO JUDICIARY

05/12/2026PRINT NUMBER 86A

Go to topS00086 Committee&nbspVotes:

Go to topS00086 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00086 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 86--A

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary -- recommitted
 to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
 -- committee discharged, bill amended, ordered reprinted as amended
 and recommitted to said committee

 AN ACT to amend the civil practice law and rules, in relation to grounds
 for vacating an arbitration award on the basis of partiality of the
 arbitrator

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Article 75 of the civil practice law and rules is amended
 2 by adding a new section 7500 to read as follows:
 3 § 7500. Definitions. As used in this article:
 4 (a) "Arbitration" means the use of a decision-making forum conducted
 5 by an arbitrator or panel of arbitrators within the meaning and subject
 6 to the provisions of this article.
 7 (b) "Neutral third party arbitrator" means an arbitrator who does not
 8 have an undisclosed known, direct, and material interest in the outcome
 9 of the arbitration proceeding or a known, existing, and substantial
 10 relationship with a party, counsel, or representative of a party.
 11 (c) "Employment" means a relationship between an employer and an
 12 employee, as defined in section three of the Fair Labor Standards Act of
 13 1938 (29 U.S.C. § 203) but who is neither an officer nor employed pursu-
 14 ant to an individualized, mutually-negotiated employment contract.
 15 (d) "Consumer" means a natural person residing in this state who is
 16 involved in a consumer dispute.
 17 (e) "Consumer dispute" means a dispute between an individual who seeks
 18 or acquires real or personal property, services (including services
 19 relating to securities and other investments), money, or credit for
 20 personal, family or household purposes and the seller or provider of

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00651-03-6

 S. 86--A 2

 1 such property, services, money or credit, but shall not include any such
 2 property or service, including financial products and services where the
 3 terms of acquisition of such product or service are mutually negotiated
 4 between the seller and the purchaser of such property or service.
 5 § 2. Section 7501 of the civil practice law and rules, as amended by
 6 chapter 532 of the laws of 1963, is amended to read as follows:
 7 § 7501. Effect of arbitration agreement. A written agreement to
 8 submit any [controversy] employment or consumer dispute thereafter aris-
 9 ing or [any] then existing [controversy] to arbitration is enforceable
 10 without regard to the justiciable character of the controversy and
 11 confers jurisdiction on the courts of the state to enforce it and to
 12 enter judgment on an award; provided, however, that, with the exception
 13 of arbitrators designated pursuant to a collective bargaining agreement
 14 between an employer and a labor organization and except where inconsist-
 15 ent with federal law, any language requiring that such employment or
 16 consumer dispute be submitted to an arbitrator or arbitration organiza-
 17 tion that is not a neutral third-party arbitrator, as that term is
 18 defined in subdivision (