Opinion ID: 1364007
Heading Depth: 2
Heading Rank: 2

Heading: The December 10, 2008 Decision

Text: The district court consulted the general rule that absent special circumstances, where one member of a three-person arbitration panel dies before the rendering of an award and the arbitration agreement does not anticipate that circumstance, the arbitration must commence anew with a full panel. Trade & Transport, Inc. v. Natural Petroleum Charterers Inc., 931 F.2d 191, 193-94 (2d Cir.1991). Applying that rule to the context of Sullivan's resignation, the district court granted INA's petition for a new panel. The court acknowledged the potential for abuse and manipulation intrinsic in permitting a losing party a `second bite at the apple' upon resignation of his or her arbitrator, but found that because there is no suggestion of any misconduct here and neither party disputes the severity of [the] health condition that forced Mr. Sullivan to resign, and because the resignation had occurred while a motion for reconsideration was being considered and there had been no partial final award granted by the panel, the arbitration should commence anew. The court concluded that it would be unfair to force INA to submit its motion for [re]consideration [to] a panel comprised of two arbitrators who heard argument on, and ultimately decided, the summary judgment motion for which reconsideration is requested and one arbitrator who did not. PSMIC appealed and INA cross-appealed.