N.Y. Appellate Court Upholds $40.7M Arbitration Award, Finds No Evident Impartiality

NEW YORK — A New York appellate court has upheld a trial court’s confirmation of a $40.7 million arbitration award against Zurich American Insurance Co. in a COVID-19 business interruption coverage action, affirming that the insurer failed to show by “clear and convincing evidence” that the policyholder’s party arbitrator was evidentially impartial.

In a Jan. 7 order, the New York Appellate Division, 1st Department, explained that Zurich’s evidence did not establish that the arbitrator had a material conflict of interest.

HBC US Holdings LLC operates all Saks Fifth Avenue and Off Fifth Stores. HBC was insured under a business interruption …