Landlord Can't Appeal Security Deposit Refund

June 30, 2008

LVT Number: #20525

Former tenant sued landlord in small claims court for a refund of the security deposit. Landlord and tenant agreed to submit the claim to an arbitrator. The arbitrator ruled for tenant for the full amount sought. Landlord asked the court to vacate the award. The court ruled against landlord. Landlord appealed and lost. An arbitrator's award can't be vacated unless there is a clear violation of some strong public policy, or the award is irrational or goes beyond the arbitrator's authority. A mere error of fact or law isn't enough.

Former tenant sued landlord in small claims court for a refund of the security deposit. Landlord and tenant agreed to submit the claim to an arbitrator. The arbitrator ruled for tenant for the full amount sought. Landlord asked the court to vacate the award. The court ruled against landlord. Landlord appealed and lost. An arbitrator's award can't be vacated unless there is a clear violation of some strong public policy, or the award is irrational or goes beyond the arbitrator's authority. A mere error of fact or law isn't enough. Here, even if landlord's claim was true, the arbitrator's decision was rational and must be upheld.

Peterson v. Lieberman: NYLJ, 6/18/08, p. 35, col. 1 (App. T. 2 Dept.; Pesce, PJ, Weston Patterson, Golia, JJ)

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