This page explains how to challenge an arbitration award made in New York under two bodies of law: the Federal Arbitration Act (9 U.S.C. 9 to 12) and Article 75 of New York's Civil Practice Law and Rules (CPLR 7510 and 7511). KOR Law LLP's international arbitration practice represents clients in proceedings administered by the ICC, ICDR and LCIA and in ad hoc proceedings, and in challenges to enforcement of awards. Awards made abroad are usually resisted at the enforcement stage instead; see how to enforce a foreign arbitration award in New York.
Which statute governs the challenge?
Often both are in play. The Federal Arbitration Act makes a written arbitration provision in "a contract evidencing a transaction involving commerce" valid, irrevocable and enforceable, subject to ordinary contract defenses (9 U.S.C. 2), and most cross-border and interstate business contracts meet that description. CPLR Article 75 governs proceedings in New York's own courts and makes a written agreement to arbitrate enforceable "without regard to the justiciable character of the controversy," conferring jurisdiction on the state courts to enforce it and enter judgment on an award (CPLR 7501). In practice, the court you are in, the deadline you are under, and the wording of the agreement decide which framework drives the challenge, and the safest course is to meet the shorter of the two deadlines.
What are the grounds, and how do the two statutes compare?
| Issue | Federal Arbitration Act | CPLR Article 75 |
|---|---|---|
| Deadline to challenge | Serve notice within three months after the award is filed or delivered (9 U.S.C. 12) | Apply within 90 days after delivery (CPLR 7511(a)) |
| Fraud or corruption | Award procured by corruption, fraud or undue means (10(a)(1)) | Corruption, fraud or misconduct in procuring the award (7511(b)(1)(i)) |
| Arbitrator bias | Evident partiality or corruption (10(a)(2)) | Partiality of an arbitrator appointed as a neutral (7511(b)(1)(ii)) |
| Unfair procedure | Refusing to postpone for sufficient cause, refusing pertinent evidence, other misbehavior (10(a)(3)) | Failure to follow Article 75 procedure, unless waived (7511(b)(1)(iv)) |
| Excess of power | Arbitrators exceeded or imperfectly executed their powers (10(a)(4)) | Exceeded power or no final and definite award (7511(b)(1)(iii)) |
| Modification | Evident miscalculation, matter not submitted, defect of form (9 U.S.C. 11) | Miscalculation, matter not submitted, defect of form (7511(c)) |
| Deadline to confirm | Within one year after the award (9 U.S.C. 9) | Within one year after delivery (CPLR 7510) |
Under the CPLR, a party who neither took part in the arbitration nor was served with a notice of intention to arbitrate has extra grounds: no valid agreement, non-compliance with the agreement, or a time-barred claim (CPLR 7511(b)(2)). A party who did take part must also show its rights were prejudiced (7511(b)(1)).
How does a challenge work, step by step?
- Note the delivery date. Both deadlines run from delivery (9 U.S.C. 12; CPLR 7511(a)).
- Pick the court. A federal court needs its own basis for jurisdiction that appears on the face of the application to vacate or confirm (Badgerow v. Walters, 2022). Otherwise the challenge goes to state Supreme Court, by special proceeding in the county the agreement names or as CPLR 7502(a) directs.
- Identify the statutory ground. Tie each argument to 9 U.S.C. 10 or CPLR 7511(b), not to a disagreement with the result.
- Serve on time. Under the FAA, notice must be served on the adverse party or its attorney within three months (9 U.S.C. 12).
- Ask for a stay if needed. A judge may stay the other side's enforcement of the award while the motion is pending (9 U.S.C. 12).
- Decision. If the court denies vacatur or modification under the CPLR, it confirms the award (CPLR 7511(e)), and a judgment is entered (CPLR 7514(a)).
- Rehearing or appeal. A court that vacates may order a rehearing (9 U.S.C. 10(b); CPLR 7511(d)). Federal orders confirming, denying confirmation, or vacating an award are appealable (9 U.S.C. 16(a)(1)(D), (E)).
What happens if nobody challenges the award?
The winning party can confirm it. Under the FAA, where the agreement provides for judgment on the award, a party may apply within one year after the award is made, and the court "must grant" confirmation unless the award is vacated, modified or corrected under sections 10 and 11; service of notice gives the court jurisdiction over the adverse party as though it had appeared (9 U.S.C. 9). Under the CPLR, the court "shall confirm" on an application made within one year after delivery, unless a 7511 ground is established (CPLR 7510). The judgment roll then includes the agreement, the award and the court's orders (CPLR 7514(b)).
What will a court not do?
It will not decide the case again. In matters under Article 75, the court "shall not consider whether the claim with respect to which arbitration is sought is tenable, or otherwise pass upon the merits of the dispute" (CPLR 7501). The federal grounds are similarly limited to the four categories in 9 U.S.C. 10(a). A statute of limitations defense that was not raised in court before the arbitration is left to the arbitrators' discretion and generally is not reviewable afterward (CPLR 7502(b)).
Institutional rules can narrow recourse further. The ICDR International Arbitration Rules provide that the parties waive irrevocably any form of appeal, review or recourse to a court, "insofar as such waiver can validly be made" (ICDR Rules, Article 33(1)). Rule choices are compared in how the ICC, ICDR and LCIA differ.
What changes the answer?
- Federal jurisdiction. Without diversity or a federal question on the face of the application, the challenge belongs in state court (Badgerow); see federal court or state court for a New York business dispute.
- Participation. Non-participants have extra CPLR grounds (7511(b)(2)).
- Timeliness of a stay application. Objections to arbitrability may be lost earlier, at the notice-of-intention stage; see how to compel or stop an arbitration in New York.
- Where the award was made. Foreign awards are usually resisted under the New York Convention, not vacated here.
- Interim orders. Emergency arbitrator orders raise their own enforcement questions; see whether you can get emergency relief before a tribunal is formed.
- Treaty awards. ICSID awards are not subject to any appeal or remedy outside the ICSID Convention (Article 53); see how investment treaty awards are enforced in the United States.
For example: a supplier who believes an arbitrator was biased
For example, imagine a New York supplier that loses an ICDR arbitration seated in Manhattan against a Florida customer and later learns the sole arbitrator had an undisclosed business relationship with the customer's parent company. (This is a made-up illustration, not a real client or result.) The parties are citizens of different states and the amount exceeds $75,000, so a federal court has a basis for jurisdiction on the face of the application (Badgerow).
The supplier serves notice of a motion to vacate for evident partiality within three months after delivery (9 U.S.C. 10(a)(2), 12), and asks the judge to stay enforcement while the motion is pending (9 U.S.C. 12). It does not argue that the arbitrator misread the contract, which is not a statutory ground. If the court vacates, it may order a rehearing before a new arbitrator if the time for an award under the agreement has not expired (9 U.S.C. 10(b)).
Common mistakes
- Counting from the wrong date. Deadlines run from filing or delivery of the award (9 U.S.C. 12; CPLR 7511(a)).
- Arguing the merits. Courts do not pass upon the merits (CPLR 7501).
- Filing in federal court without a basis. Jurisdiction must appear on the face of the application (Badgerow).
- Sitting on a known procedural defect. Continuing without objection can waive a CPLR 7511(b)(1)(iv) ground.
- Ignoring the confirmation clock. The winner has one year to confirm (9 U.S.C. 9; CPLR 7510).
- Forgetting what follows. A confirmed award becomes a judgment (CPLR 7514(a)); see what happens after a money judgment is entered in New York.
What to do this week
- Record the date and method by which the award was delivered.
- Calendar three months and 90 days from that date.
- Collect the arbitration agreement, the rules in force, the record and any disclosures by the arbitrators.
- List each possible ground and the evidence for it.
- Decide whether federal court has jurisdiction on the face of the application.
- Consider whether to seek a stay of enforcement.
Frequently asked questions
Can I appeal an arbitration award because the arbitrator made a legal error?
Not as such. The statutes list specific grounds (9 U.S.C. 10(a); CPLR 7511(b)), and the court does not pass upon the merits (CPLR 7501).
What happens if I miss the deadline?
The statutes set the time to challenge (9 U.S.C. 12; CPLR 7511(a)), and the other side can still confirm within one year (9 U.S.C. 9; CPLR 7510).
Can the court send the case back to the arbitrators?
Yes. After vacating, a court may order a rehearing (9 U.S.C. 10(b); CPLR 7511(d)).
Can the court fix a math error?
Yes. Evident miscalculations can be modified or corrected (9 U.S.C. 11(a); CPLR 7511(c)(1)).
Is a federal order on a motion to vacate appealable?
Yes. Orders confirming, denying confirmation, modifying, correcting or vacating an award are appealable (9 U.S.C. 16(a)(1)(D), (E)).
Does the institution's rulebook matter?
Yes. Rules can include waivers of recourse "insofar as such waiver can validly be made" (ICDR Rules, Article 33(1)).