A former bond trader for Odeon Capital Group obtained an arbitration award against Odeon for $1,102,193.00 on a claim for unpaid wages. Odeon then brought a petition to vacate the award on the ground of fraud, contending that the bond trader committed perjury at arbitration by falsely stating that no FINRA investigations into his business were then ongoing. The trial court denied vacatur ruling that Odeon failed to demonstrate that the alleged perjury was material to the award of unpaid wages. The court explained that in order for fraud to be material within the meaning of Section 10(a)(1) of the FAA, a petitioner must demonstrate a nexus between the alleged fraud and the decision made by the arbitrators (although a petitioner need not demonstrate that the arbitrators would have reached a different result). On appeal, the Second Circuit agreed that the trader failed to demonstrate materiality. The Second Circuit also reversed the lower court's denial of the bond trader's motion for attorneys' fees incurred litigating the petition to vacate the award. The lower court had erred by denying the fees as a matter of discretion under its equitable powers; the fees were mandatory under New York Labor Law. Odeon Capital Group LLC v. Ackerman, Case No. 16‐1545‐cv (2d Cir. July 21, 2017).
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