Originally from Alternatives to the High Cost of Litigation

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A New York Law Journal article by Neal M. Eiseman, “Falling Through the Cracks: Non-Paying Parties in Arbitration,” (Oct. 15, 2014)(available at http://bit.ly/2yWu5cK), was of interest to, and met with rueful recognition by many arbitrators and participants in arbitrations, including this author.

But this article in some respects is easier to write than Eiseman’s, because the courts now seem to be taking greater note of the problem he discussed, and more relevant decisions are available.

This article will lead off with a discussion of some of these now numerous decisions involving non-payments. As they indicate, however, the issue often generates divisive and complex proceedings which undermine arbitration’s supposed reputation for speedy dispute resolution.