CSP TECHNOLOGIES INC v. HEKAL (2008)

Order, Supreme Court, New York County (Sheila Abdus-Salaam, J.), entered January 11, 2008, which granted the petition to vacate a prior order of the arbitrators directing exchange of information, only to the extent of granting respondent's cross motion for discovery to be conducted under the supervision of the arbitrators, unanimously reversed, on the law, with costs, the petition and the cross motion denied, and this proceeding dismissed.

 The court lacked authority to entertain the petition to review an intermediary ruling of the arbitrators on a procedural matter (see Mobil Oil Indonesia v. Asamera Oil [Indonesia], 43 N.Y.2d 276, 401 N.Y.S.2d 186, 372 N.E.2d 21 [1977];  Avon Prods. v. Solow, 150 A.D.2d 236, 239-240, 541 N.Y.S.2d 406 [1989] ).   Such intervention is not authorized by the CPLR, and is proscribed as a matter of policy.   The relief “would disjoint and unduly delay the proceedings, thereby thwarting the very purpose of” arbitration (Mobil Oil Indonesia, 43 N.Y.2d at 282, 401 N.Y.S.2d 186, 372 N.E.2d 21).

 With respect to the cross motion, the court erroneously determined that the arbitrators lacked authority to direct the parties to produce documents.   Although the CPLR does not itself authorize arbitrators “to direct the parties to engage in disclosure proceedings” (De Sapio v. Kohlmeyer, 35 N.Y.2d 402, 406, 362 N.Y.S.2d 843, 321 N.E.2d 770 [1974] ), no statute or policy prevents parties from charting their own procedural course in arbitration by voluntarily agreeing to abide by the rules of the arbitral forum, including, as in this case, rules permitting the arbitrators to direct the exchange of information (see Commercial Arbitration Rule R-21(a)(I) of the American Arbitration Association).   The strong policy of this State requires the courts to enforce arbitration agreements as written, and to leave to the arbitrators the interpretation and application of the procedural rules of the arbitral forum (Matter of Sobel [Charles Schwab & Co., Inc.], 37 A.D.3d 877, 878, 828 N.Y.S.2d 720 [2007];  Matter of Faberge, Inc. [Felsway Corp.], 149 A.D.2d 369, 370, 539 N.Y.S.2d 944 [1989], lv. denied 74 N.Y.2d 610, 546 N.Y.S.2d 554, 545 N.E.2d 868 [1989] ).