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A New Jersey state court confirmed a $22 million arbitration award over objections to the legal reasoning of the arbitrator and the arbitrator's receipt of a supplemental report.
In Q Capital Corp. v. Wilmington Trust Co., No. A-2780-05T5, 2007 WL 93231 (N.J. Super. App. Div. Jan. 12, 2007), Q Capital financed its purchase of receivables with Wilmington. Problems arose from the agreement and the parties agreed to settle their dispute in arbitration.
The arbitrator issued an award in favor of Wilmington, and Q Capital petitioned the court to set aside the award, arguing that the arbitrator had exceeded his authority by accepting a supplemental report and damages claim right before the start of the arbitration. The Court rejected the argument because Q Capital had been given time to respond to the report and damages claim.
The Court also rejected Q Capital's contention that the arbitrator had not aptly considered the facts because he adopted the majority of facts and conclusions of law presented by Wilmington. However, an arbitrator may adopt one party's facts and conclusions of law if the arbitrator indicates that the facts and conclusions of law are accurate and reflective of the arbitrator's view of the evidence.
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