PAMI REALTY, LLC VS. LOCATIONS XIX INC (L-5845-18, MIDDLESEX COUNTY AND STATEWIDE) (A-0576-20)
During the arbitration of the parties' dispute, the arbitrator participated in settlement discussions. After he advised counsel he would be issuing an opinion in favor of defendant, plaintiff complained about the arbitrator's participation in the settlement discussions and the resumption of role of arbitrator. The motion judge denied defendant's motion to confirm the arbitration award and granted plaintiff's motion to vacate it on the basis the arbitrator had exceeded his powers. The motion judge apparently based those decisions on the lack of a written agreement regarding whether the arbitrator could participate in settlement discussions and resume arbitrating, citing Minkowitz v. Israeli, 433 N.J. Super. 111 (App. Div. 2013). Clarifying Minkowitz, the court held that although the parties had to agree to an arbitrator participating in settlement discussions and continuing to act as an arbitrator, that agreement did not have to be in writing. The court remanded for an evidentiary hearing.
