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