A $100 million arbitration award against NutraSweet was
reinstated by a New York state appellate court due to the
"emphatic federal policy in favor of arbitral dispute
resolution embodied in the FAA, a policy that applies with special
force in the field of international commerce."
NutraSweet's acquisition of a Korean aspartame producer went
sour, and the two companies proceeded to arbitration. The
arbitration panel ruled against NutraSweet on all of the issues and
rendered an award in excess of $100 million to Daeseng Corp.
However, when Daeseng petitioned a New York trial court for
confirmation of the award, the court reversed and remanded, finding
the arbitrators had "manifestly disregarded the law and had
misconstrued the procedural record."
