Dempsey Pipe & Supply, Inc. v. T. Co. Metals

07 Civ. 7747 (PAC) (2008)

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Dempsey Pipe & Supply, Inc. v. T. Co. Metals

United States District Court for the Southern District of New York
07 Civ. 7747 (PAC) (2008)

Facts

T. Co. Metals (TCM) (defendant) and Dempsey Pipe & Supply, Inc. (Dempsey) (plaintiff) entered into an agreement for the sale of steel pipe. The agreement stated that disputes would be arbitrated pursuant to the American Arbitration Association’s international rules at the International Centre for Dispute Resolution (ICDR). A dispute arose between TCM and Dempsey concerning unpaid invoices and defective pipes and was arbitrated by ICDR. The arbitrator issued an award, and both parties subsequently filed for the award to be amended. The arbitrator acknowledged errors in the original award and issued an amended award. The mathematical calculations in the award were correct on their face but based on improper information. The arbitrator noted that the errors were based on misreading a unit of measure in an invoice, using an invoice for the wrong size pipe, and failing to separate invoices for pipes with different types of end pieces. The amended award was finalized. Dempsey and TCM both filed in federal district court for judicial review of the amended award. Dempsey argued in part that the award should be vacated because the arbitrator exceeded his authority by changing errors that were not mere clerical mistakes after his role as an arbitrator was concluded.

Rule of Law

Issue

Holding and Reasoning (Crotty, J.)

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