Arbitration in New York: law, courts, costs and enforcement

The short version

• Two layers of law: the Federal Arbitration Act (FAA), Title 9 of the United States Code, for interstate and foreign commerce, and New York’s own CPLR Article 75 (the Civil Practice Law and Rules) for the rest. New York has not adopted the Model Law of the United Nations Commission on International Trade Law (UNCITRAL), nor has the United States at the federal level.
• The main institution is the American Arbitration Association and its International Centre for Dispute Resolution (AAA-ICDR), headquartered in New York; CPR and JAMS also run cases. The New York International Arbitration Center (NYIAC) provides hearing rooms but does not administer cases.
• A court confirms an award within one year (CPLR 7510; FAA s 9); a party moves to vacate within 90 days (CPLR 7511(a)) or three months (FAA s 12).
• There is no appeal on the merits: the FAA grounds cannot be widened by contract (Hall Street Associates LLC v Mattel Inc), and manifest disregard of the law, a narrow judge-made exception, survives only in the Second Circuit (Weiss v Sallie Mae Inc).
• Foreign awards are enforced under the New York Convention, confirmed within three years (FAA s 207). New York is not among the five most preferred seats in the 2025 Queen Mary survey; its draw is the statutory framework and the choice-of-law statutes in General Obligations Law sections 5-1401 and 5-1402.^{1,6,9,13,15,21,23,28,29,30,31,32,33,39}

What law governs arbitration in New York?

Two layers of law govern arbitration in New York. The Federal Arbitration Act makes a written arbitration agreement in a contract involving commerce “valid, irrevocable, and enforceable” save on ordinary contract-law grounds (s 2), and tells a federal court to stay its proceedings on an arbitrable issue (s 3).^1,2

CPLR Article 75 is New York’s own statute. A written agreement to arbitrate is “enforceable without regard to the justiciable character of the controversy” (s 7501). New York has not adopted the UNCITRAL Model Law, the 1985 template for national arbitration laws that UNCITRAL amended in 2006; nor has the United States at the federal level.^15,31

Which layer controls depends on the deal. The FAA reaches interstate and foreign commerce and, as the Supreme Court has held, pre-empts state rules that single out arbitration; parties may nonetheless agree that New York procedure applies. Article 75 governs where the FAA does not.^1,15

The New York Convention sits above both for cross-border awards, carried into United States law by the FAA’s Chapter 2 (sections 201 to 208).^12,30

Why do parties choose New York as a seat?

Parties choose New York for its law and its market. It is widely described as the leading arbitration seat in the United States, and is the home of the AAA-ICDR, CPR and JAMS; the New York City Bar Association calls it “the nation’s leading arbitration forum”, a framing we report, not independent proof.^41,45,46,50

On the global picture New York is more modest. In the 2025 International Arbitration Survey by Queen Mary University of London, respondents could name up to five seats: London was named by 34%, Singapore and Hong Kong by 31% each, and New York was not among the five most preferred.³²

The commercial draw is statutory. General Obligations Law section 5-1401 lets parties to a contract of at least US$250,000 choose New York law, “whether or not such contract … bears a reasonable relation to this state”, though not for labour or personal services. Section 5-1402 lets a non-resident be sued in New York on a deal of at least US$1,000,000 with a New York law and forum clause.^28,29

On volume, the AAA-ICDR reported almost 12,000 business-to-business cases filed in 2025, with US$21.4 billion in claims, and 580,000 new cases across all sectors. Those are national figures, not New York-only; the 580,000 is an all-sector total, not New York commercial arbitrations.⁴⁴

Which institutions run arbitrations in New York, and under what rules?

Several institutions run arbitrations in New York. The main one is the AAA-ICDR: the ICDR is the AAA’s international division, headquartered in New York, which runs new international cases under its International Dispute Resolution Procedures, amended and effective 1 March 2021. CPR Dispute Resolution Services (part of the International Institute for Conflict Prevention & Resolution), JAMS and the International Chamber of Commerce (ICC), through its International Court of Arbitration, also run cases; the table sets out their rules.^{41,42,45,46,47}

NYIAC is different. The New York International Arbitration Center is a non-profit that provides hearing rooms, and its own rule says it “does not administer cases, appoint arbitrators or have its own detailed arbitration rules”. A clause referring to NYIAC runs under the UNCITRAL Arbitration Rules with New York as the place of arbitration (Rule No. 1). For maritime disputes, the Society of Maritime Arbitrators publishes Maritime Arbitration Rules (contracts from 1 October 2024) and a Shortened Arbitration Procedure (from 1 June 2022).^48,49

What should the arbitration clause say, and what can be arbitrated?

The FAA asks for very little in form. The only requirement is a written agreement to arbitrate (s 2). Under the FAA’s separability doctrine the arbitration clause stands apart from the contract, so a challenge to the whole contract is generally for the tribunal, while a challenge to the clause itself goes to a court first (Buckeye Check Cashing Inc v Cardegna). The tribunal’s power to rule on its own jurisdiction is called competence-competence.^1,34

A New York choice-of-law clause is backed by statute for larger deals: at least US$250,000 for New York law and US$1,000,000 for New York courts (General Obligations Law sections 5-1401 and 5-1402). For the wording, we point readers to the institutions’ model clauses, such as the ICDR’s standard arbitration clause, rather than draft one.^28,29,42

New York limits what a mandatory clause can cover: CPLR 7515 makes a pre-dispute clause forcing discrimination claims into mandatory arbitration a “prohibited clause”, except where that is inconsistent with federal law. For a consumer-credit matter, CPLR 7516 adds pleading and attachment requirements before a court will confirm the award. Confirmation and entry of judgment then flow from the agreement (CPLR 7501; FAA s 9).^6,15,26,27

How does a New York arbitration run, step by step?

A New York arbitration runs the same whether it is administered by an institution or ad hoc, meaning run by the parties without one, and the ICDR Procedures give the clearest map. A party serves a demand for arbitration, or a notice of intention to arbitrate, under CPLR 7503(c); the other side has 20 days to apply to stay it, or be precluded from objecting that no valid agreement was made or that the claim is time-barred.¹⁷

If a party refuses to arbitrate, the other can apply to compel, the motion to compel arbitration in federal terms (CPLR 7503(a); FAA s 4). The first court application is brought as a special proceeding (CPLR 7502(a)), often called the Article 75 proceeding. A claim time-barred in court may be barred if a party asserts the limitation; raised only before the arbitrators, it is for their sole discretion (CPLR 7502(b)).^3,16,17

The parties’ agreed method sets the tribunal; if it fails, the court appoints (CPLR 7504; FAA s 5), and the default is a single arbitrator. An arbitrator can issue subpoenas and summon witnesses and documents (CPLR 7505; FAA s 7). Under the ICDR Procedures the Expedited Procedures apply where no disclosed claim or counterclaim exceeds US$500,000 (Art E-1). The award must be in writing, signed and affirmed (CPLR 7507).^{4,5,18,19,20,42}

How long does arbitration in New York take, and what does it cost?

What it costs turns mainly on the amount in dispute; how long it takes turns on the track and the parties. The ICDR’s International Arbitration Fee Schedule, effective 1 September 2025, sets administrative fees in bands; arbitrator compensation is separate.⁴³

• The initial filing fee is paid at filing and the final fee falls due when the first evidentiary hearing is scheduled.
• Worked example, US$5,000,000 in dispute: in the US$1,000,000 to less than US$10,000,000 band, the initial filing fee is US$8,925 and the final fee US$9,675, US$18,600 in all, before arbitrator compensation.
• The award allocates the fees, and a New York court can reduce or disallow an arbitrator’s fee or expense it finds excessive (CPLR 7513).^24,43

On speed, the AAA-ICDR reported that some 2025 financial-services awards were issued in as little as 1.8 months. That is its own reported figure, at the fast end of a wide range.⁴⁴

What role do New York courts play during an arbitration?

New York courts support an arbitration rather than run it. The first application is a special proceeding, on which a court will compel or stay arbitration (CPLR 7502(a), 7503). A court can also grant interim relief. CPLR 7502(c) lets the Supreme Court order an attachment or a preliminary injunction for an arbitration to be commenced inside or outside the state, but “only upon the ground that the award … may be rendered ineffectual” without it, which reaches foreign-seated and Convention cases.^16,17

In federal court a section 3 stay is mandatory once a party asks for it: the court “lacks discretion to dismiss the suit” (Smith v Spizzirri). Where a post-award motion is heard shifted after Badgerow v Walters, which held that a federal court cannot “look through” a petition to confirm or vacate an award under FAA sections 9 and 10 to find jurisdiction, so it needs an independent basis. Many New York confirmation and vacatur applications therefore proceed in the state Supreme Court, often its Commercial Division, under Article 75.^36,38

Discovery under 28 U.S.C. section 1782 is no longer available for a private arbitration, because the Supreme Court held that only a governmental or intergovernmental body is a “foreign or international tribunal” (ZF Automotive US Inc v Luxshare Ltd). Under FAA section 16 an order confirming or vacating an award can be appealed, but most orders that favour arbitration before the final decision cannot. We could not open the Commercial Division rule (22 NYCRR 202.70), so we do not state which arbitration applications it lists.^11,37,53

Can you appeal or set aside an arbitral award in New York?

There is no appeal on the merits in New York, under either statute. The route is to vacate (federal) or set aside (state). FAA section 10(a) lists four narrow grounds: corruption or fraud; evident partiality; arbitrator misconduct; and arbitrators who “exceeded their powers, or so imperfectly executed them” that no final and definite award was made. Section 11 covers modification or correction. Parties cannot buy wider review: in Hall Street Associates LLC v Mattel Inc the Supreme Court held those grounds exclusive, so a clause for legal-error review is unenforceable.^7,8,33

The clock is short. Under the FAA, notice of a motion to vacate, modify or correct must be served “within three months after the award is filed or delivered” (s 12). Under state law the application must be made within 90 days of delivery (CPLR 7511(a)). The state grounds in CPLR 7511(b) track the federal ones.^9,23

Manifest disregard of the law survives narrowly in the Second Circuit, which covers New York. It “remains a valid ground for vacating arbitration awards”, but a party raising it “bears a heavy burden” and awards fall on it “only in those exceedingly rare instances where some egregious impropriety on the part of the arbitrator is apparent” (Weiss v Sallie Mae Inc). The related section 10(a)(4) standard reaches an arbitrator who “dispense[s] his own brand of industrial justice” (Stolt-Nielsen SA v AnimalFeeds International Corp).^35,39

How are arbitral awards enforced in and from New York?

A confirmed award is as binding as a court judgment. It is final, and the same dispute cannot be brought again. A court must confirm a domestic award within one year, running from when the award is made under FAA section 9 and from its delivery under CPLR 7510, unless it is vacated or modified. Judgment then enters with “the same force and effect” as any court judgment (FAA s 13; CPLR 7514).^6,10,21,25

A foreign award runs on a different clock. A party has three years to confirm a Convention award, and the court “shall confirm the award unless it finds one of the grounds for refusal” in the Convention (FAA s 207). A federal court has jurisdiction regardless of the amount, and a state-court case can be removed (FAA ss 203, 205). The Second Circuit treats recognition, confirmation and enforcement of a foreign Convention award as a single-step process, holding that “confirm” under FAA section 207 is the equivalent of “recognition and enforcement” under the Convention, so a foreign award need not be confirmed separately before it is enforced (CBF Indústria de Gusa S/A v AMCI Holdings Inc).^12,13,40

The United States acceded to the New York Convention with effect from 29 December 1970, with two reservations: it applies the Convention only to awards made in another contracting state (the reciprocity reservation) and only to differences considered commercial. A court refuses enforcement only on the Convention’s Article V grounds.³⁰

A New York award is enforced abroad under the New York Convention, the 1958 treaty on recognising and enforcing foreign arbitral awards, which has 172 parties; see New York Convention grounds. For the other seats in this set, see arbitration in London and arbitration in Singapore.³⁰

What changed recently, and what is pending?

Article 75 has changed recently, in several places. CPLR 7515, which makes a mandatory pre-dispute clause for discrimination claims a prohibited clause, was revised on 18 October 2019. CPLR 7516, on confirming an award based on a consumer credit transaction, carries a 13 May 2022 revision date, and CPLR 7510-a, on confirming public-sector awards, a 1 December 2023 one.^22,26,27

At the federal level, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (Public Law 117-90, signed on 3 March 2022) added a new Chapter 4 to the FAA and amended section 2, which now ends “… or as otherwise provided in chapter 4”, for disputes that arise or accrue on or after 3 March 2022.^1,14

The New York City Bar Association’s report on business-to-business arbitration, reissued in April 2022, opposed bills before the State Legislature to bar mandatory consumer and employment arbitration and add a “manifest disregard” ground to Article 75. The report, not the bill texts, describes bills from the 2019 to 2022 sessions; we have not confirmed whether equivalent bills remain before the Legislature as of 30 October 2026.⁵⁰

What do New York’s courts and institutions say about AI in arbitration?

No New York rule is written for AI in arbitration; the anchors are the court system and the state bar, both aimed at lawyers and judges, not tribunals. The New York Unified Court System issued an interim policy on AI, reported in 2025. The official policy was not reachable (a security block), so we report only what its press summary states and do not pin the exact date or section numbers. As reported, the policy applies to judges and non-judicial staff, allows only approved generative-AI products, requires training, and bars putting confidential, privileged or personal information into non-private models.⁵²

The New York State Bar Association’s Task Force on Artificial Intelligence set out a report the House of Delegates approved on 6 April 2024. Its four recommendations: adopt AI guidelines; educate the bench, bar and regulators to apply existing law; identify the risks existing law does not reach before new regulation; and examine the law itself as a tool for governing AI.⁵¹

For what the AAA-ICDR does on AI, see our AAA explainer; for JAMS, our JAMS explainer; and for the general picture, AI in arbitration. The US-facing Silicon Valley guidelines are in our AI rules tracker, and how AI use bears on setting aside an award is in AI and setting aside awards. Where a lawyer’s duty comes up, note the risk of a hallucination.

What is still open?

• Whether New York adds a “manifest disregard” ground to Article 75, or bars mandatory consumer and employment arbitration, the bills the City Bar report addresses.
• The exact wording and section numbers of the court system’s interim AI policy, and of the Commercial Division rule (22 NYCRR 202.70), which we could not open.
• Whether any New York court has set aside or refused to confirm an award over AI use. We found none as of 30 October 2026 (see how we research).^50,52,53