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AAK USA, Inc. v. Integrity Ingredients Corporation
1:25-cv-01727
| S.D.N.Y. | May 29, 2025
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Background

  • This case involves a petition to confirm an arbitration award under the Federal Arbitration Act, following a dispute over a contract for product purchases dated April 1, 2022.
  • Petitioner claimed respondent failed to pay for delivered products, constituting a breach of contract.
  • The petitioner filed a Demand for Arbitration in June 2023, including breach of contract and unjust enrichment claims.
  • Respondent did not respond to the arbitration demand or participate in proceedings.
  • The arbitrator awarded petitioner $1,203,598.89 plus 12% interest and $65,427.40 in attorney’s fees and costs on September 17, 2024.
  • The respondent also failed to respond to the petition to confirm the award in federal court, despite extensions.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Confirm arbitration award Award is valid and enforceable; no basis to vacate under the FAA No response or participation Court confirms award; finds no material fact in dispute
Standard of review for confirmation Court review is limited—award must be confirmed unless vacated, modified, or corrected per FAA No response Limited review applies; award must be confirmed
Adequacy of evidentiary record Adequate documentation submitted to arbitrator supports award No response Sufficient record supports confirmation
Effect of non-response Non-response does not entitle to automatic default, but the record supports summary judgment No response Treats as summary judgment motion; grants confirmation

Key Cases Cited

  • D.H. Blair & Co. v. Gottdiener, 462 F.3d 95 (2d. Cir. 2006) (motions to confirm or vacate arbitration awards are treated like summary judgment motions based on the record)
  • Willemijn Houdstermaatschappij, BV v. Standard Microsystems Corp., 103 F.3d 9 (2d. Cir. 1997) (arbitration awards are confirmed if there is even a barely colorable justification)
  • Porzig v. Dresdner, Kleinwort, Benson, N.A. LLC, 497 F.3d 133 (2d. Cir. 2007) (judicial review of arbitration awards is extremely limited)
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Case Details

Case Name: AAK USA, Inc. v. Integrity Ingredients Corporation
Court Name: District Court, S.D. New York
Date Published: May 29, 2025
Docket Number: 1:25-cv-01727
Court Abbreviation: S.D.N.Y.