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Aviall, Inc. v. Ryder System, Inc.

110 F.3d 892 (1997)

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Aviall, Inc. v. Ryder System, Inc.

United States Court of Appeals for the Second Circuit
110 F.3d 892 (1997)

EP

Facts

Ryder System, Inc. (Ryder) (defendant), a subsidiary of Aviall, Inc. (plaintiff), was spun off to shareholders. The contract for the spin-off transaction included an arbitration provision selecting Ryder’s auditor, KPMG Peat Marwick (KPMG), as the arbitrator. Aviall took issue with Ryder’s distribution of assets and liabilities in the spin-off and initiated arbitration before KPMG. Aviall then filed a lawsuit requesting that KPMG be disqualified as the arbitrator, arguing that KPMG was biased due to its business relationship with Ryder. Ryder filed a motion for summary judgment that was granted by the court, and Aviall appealed.

Rule of Law

Issue

Holding and Reasoning (Lumbard, J.)

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