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This case involves an action for reformation of a contract where the Special Term correctly dismissed the defendant's affirmative defenses of final resolution of issues and res judicata. These defenses were based on a prior arbitration award. However, the arbitrator's written decision explicitly stated that arbitration was not the appropriate forum for contract reformation, deeming it a judicial function. Consequently, the action for contract reformation could not be precluded by the arbitration award because the arbitrator did not address the specific issue. The court referenced established law that res judicata applies only to issues actually resolved by arbitration, and an award is not a bar to a subsequent action if the issue was not passed upon by the arbitrators. The appellate court unanimously affirmed the order.
Independent Ass'n of Plastic & Fibre Workers, Local No. 1 v. Spaulding Fibre Co. is a workers' compensation case decided in Appellate Division of the Supreme Court of the State of New York. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in Appellate Division of the Supreme Court of the State of New York.
Full Decision Text1 Pages
This case involves an action for reformation of a contract where the Special Term correctly dismissed the defendant's affirmative defenses of final resolution of issues and res judicata. These defenses were based on a prior arbitration award. However, the arbitrator's written decision explicitly stated that arbitration was not the appropriate forum for contract reformation, deeming it a judicial function. Consequently, the action for contract reformation could not be precluded by the arbitration award because the arbitrator did not address the specific issue. The court referenced established law that res judicata applies only to issues actually resolved by arbitration, and an award is not a bar to a subsequent action if the issue was not passed upon by the arbitrators. The appellate court unanimously affirmed the order.
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