Originally from ADR and the Law - 20th Edition

Preview Page

This case involves an arbitration award arising out of a licensing dispute between Photopaint Technologies, LLC and Smartlens Corp. The arbitration award voided the license agreement and allowed either party to rescind it within thirty days from receipt. The award also provided Smartlens would make a payment to Photopaint if either party elected to rescind, but the amount was dependent on which party rescinded. When the date on which the option to rescind was scheduled to expire, the parties entered into a series of agreements to allow for continued settlement discussions. These discussions continued after the anniversary date of the issuance of the award. When the discussions broke down, Photopaint sought to confirm the award. The district court dismissed, holding that the action was time barred because it was filed more than one year after the date the award was made. This decision was then appealed to the Second Circuit.
Section 9 of the Federal Arbitration Act provides that “at any time within one year after the award is made, any party to the arbitration may apply to the court . . . for an order confirming the award.”