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Second Circuit Review: Sanctions Awards In Arbitration Proceedings

May 28, 2009 Full PDF

Litigation partners Marty Flumenbaum and Brad Karp's "Second Circuit Review" column appeared in the May 27 issue of the New York Law Journal. The article discusses ReliaStar Life Insurance Company of New York v. EMC National Life Company, in which the U.S. Court of Appeals for the Second Circuit expands the scope of an arbitrator's authority to impose sanctions. The decision "reflects a desire on the part of the court to sanction bad-faith litigation, even in circumstances where there may exist some doubt as to the basis for imposing such a sanction." Arbitration parties who act in bad faith may face liability for attorney's or arbitrator's awards.

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