In Elul Diamonds Co. Ltd. v. Z Kor Diamonds, Inc. , Z Kor Diamonds asked a court to confirm an $185,226 arbitration award which had been issued in its favor.
Arbitration awards are usually upheld as long as the arbitrator can offer a "barely colorable justification" for the outcome. Here, Elul Diamonds contested the arbitrator's "jurisdiction" -- or authority -- to entertain the dispute.
Both the New York County Supreme Court and Appellate Division, First Department, found the arbitrator's conclusion the dispute arose from a New York consignment transaction -- and was thus empowered to hear the case -- reasonable.
In any event, Elul lost the ability to object to the arbitrators' authority since it appeared in the case, "advanced substantive legal arguments," and interposed non-jurisdictional claims.
Was Elul stoned?
For a copy of the Appellate Division's decision, please use this link: Elul Diamonds Co. Ltd. v. Z Kor Diamonds, Inc.