Friday, March 27, 2009

Award of Rabbinical Court Vacated For Non-Disclosure of Relationship To A Party

In Matter of Beth Jacob Teachers Seminary Inc. v Le'Bunos, (NY Kings Co. Sup. Ct., March 24, 2009), a New York trial court took the unusual step of vacating an arbitration award made by a Rabbinical Court (bet din) on the ground that the arbitrator failed to disclose facts that may support an inference of bias. Two religious organizations that were parties to a lease agreed to submit a dispute over the scope of the lease to the Rabbinical Court of Tzedek Umishpot. Unknown to the lessee, an employee of the lessor was married to Rabbi Yerachmiel Barash who served as secretary and clerk to the Rabbinical Court. This information surfaced when at a Rabbinical Court hearing, Rabbi Barash-- at the urging of one of the Rabbis on the arbitration panel-- telephoned his wife to obtain verification of certain rental date information. [Thanks to Y.Y. Landa for the lead.]