Tracey Schusterman and Rosa Mazzone jointly owned a financial services group. Pursuant to their agreement, they were bound to arbitrate any disputes regarding the financial services group before the Financial Industry Regulatory Authority Inc. Schusterman initiated an arbitration against Mazzone alleging that she attempted to solicit clients in violation of their agreement. The arbitration panel found that Mazzone breached the agreement and issued an award in favor of Schusterman. Schusterman then filed an action to confirm the award. Shortly thereafter, Mazzone made a payment to Schusterman in the full amount of the award and filed a motion to dismiss the petition asserting that the motion was not ripe, and the claims now moot based on her payment, along with a request for sanctions. The court confirmed the award and denied the motion to dismiss. The court explained that prior compliance “does not negate the right of the prevailing party … to seek judicial confirmation of the arbitral decision.” The court further held that sanctions were not appropriate. The court explained that Mazzone did not follow the proper procedures in filing the sanctions motion and further that Schusterman did not act with “objective unreasonableness” as she had the right under the FAA to petition to confirm an arbitration award.

Schusterman v. Mazzone, No. 1:19-cv-00212 (S.D.N.Y. June 19, 2019)