Reeves Bros., Inc. v. Capital-Mercury Shirt Corp.
Reeves Brothers, Inc. (Reeves) sought confirmation of an arbitration award against Capital-Mercury Shirt Corp. (Capital). Capital cross-moved to vacate the award, alleging inadequate disclosure of relationships between two arbitrators, Norman Hackel and Lawrence H. Bober, and Reeves. The underlying dispute involved unpaid invoices for chemically-treated fabric sold by Reeves to Capital. The arbitration, conducted under the General Arbitration Council of the Textile and Apparel Industries (GAC), resulted in a unanimous award in favor of Reeves. Capital challenged the arbitrators' qualifications during the process, but the GAC denied the applications for disqualification. The court, applying Federal Arbitration Law and the 'evident partiality' standard, found that Capital failed to demonstrate sufficient partiality or prejudice to vacate the award. Therefore, the court granted Reeves' motion to confirm the arbitration award and denied Capital's cross-motion to vacate it.