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ARTICLE · 12 JANUARY 2018

Court Refuses To Reconsider Arbitrator's Factual Determinations

In a case emphasizing the deference courts give to factual findings of arbitrators, a magistrate judge in the Eastern District of New York has confirmed an arbitration award granting damages...

United StatesLitigation, Mediation & Arbitration

In a case emphasizing the deference courts give to factual findings of arbitrators, a magistrate judge in the Eastern District of New York has confirmed an arbitration award granting damages and attorneys' fees to a company that repossessed a leased car when the leasee fell behind on his payments.

The case arose out of the lease of a car by plaintiff Kevin Love and his wife Maria. After the Loves failed to make timely payments on the lease, defendant BMW Financial Services repossessed the car, sold it at auction, and sought payment of a deficiency balance. Mr. Love sued BMW in state court, where he asserted Fair Credit Reporting Act, tort, and contract claims. BMW removed the case to federal court, then successfully moved to compel arbitration per the terms of the lease agreement. The arbitrator entered an award in favor of BMW, rejecting all of Mr. Love's claims and awarding BMW $34,826.64 in damages plus interest and $50,000 in attorneys' fees. BMW then moved in

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