Opinion
8436 Index 650092/17
02-19-2019
In re Suncica RELJIC, et al., Petitioners–Appellants, v. TULLETT PREBON FINANCIAL SERVICES, LLC, Respondent–Respondent. In re Tullett Prebon Americas Corp., et al., Counterclaim Petitioners–Respondents, v. Suncica Reljic, et al., Counterclaim Respondents–Appellants.
Winston & Strawn LLP, New York (Thomas P. Lane of counsel), for appellants. Sheppard, Mullin, Richter & Hampton LLP, New York (John E. Kiley of counsel), for respondents.
Winston & Strawn LLP, New York (Thomas P. Lane of counsel), for appellants.
Sheppard, Mullin, Richter & Hampton LLP, New York (John E. Kiley of counsel), for respondents.
Richter, J.P., Manzanet–Daniels, Kapnick, Gesmer, Oing, JJ.
In holding petitioners jointly and severally liable for compensatory damages, plus attorneys' fees and costs, the arbitrators did not act in manifest disregard of the law (see Matter of Brown & Williamson Tobacco Corp. v. Chesley, 7 A.D.3d 368, 372, 777 N.Y.S.2d 82 [1st Dept. 2004] ; Duferco Intl. Steel Trading v. T. Klaveness Shipping A/S, 333 F.3d 383, 385 [2d Cir.2003] ["to vacate an arbitral award on the grounds of manifest disregard of the law ... we must be persuaded that the arbitrators understood but chose to disregard a clearly defined law or legal principle"] ). Contrary to their contention, petitioners were not each held responsible for both a breach of contract and a tort; rather, they committed separate wrongs that resulted in a single injury (see Spector v. Torenberg, 852 F.Supp. 201, 208–209 [S.D. N.Y.1994] ). The fact that the arbitrators did not offer a more detailed explanation for the award is not a ground on which to set the award aside ( id. at 390 ; see also Matter of Israel Aircraft Indus. [DDY–Wing Aviation], 284 A.D.2d 281, 281, 726 N.Y.S.2d 854 [1st Dept. 2001] ).
Nor did the arbitrators improperly hold petitioner Tradition Securities and Derivatives, Inc. liable for liquidated damages. Compensatory damages was one of several types of damages specifically requested, and the fact that the award only granted compensatory damages precludes a finding that the arbitrators awarded any other type of requested relief (see Roganti v. Metropolitan Life Ins. Co., 786 F.3d 201, 213–214 [2d Cir.2015] ).