Arbitrators, Not Court, Should Decide Preclusive Effect of Prior Award, N.Y. Federal Judge Rules

NEW YORK — Arbitrators, not the court, should decide the preclusive effect, if any, of a prior arbitration award on a newly initiated proceeding, a New York federal judge has ruled.

On Nov. 25, Judge P. Kevin Castel of the U.S. District Court for the Southern District of New York explained that the parties’ broad arbitration clause, which was negotiated at arms’ length, requires arbitration of the res judicata issue.

In November 2007, the Abu Dhabi Investment Authority invested $7.5 billion in Citigroup. The investment was to be converted into Citigroup common stock on four separate dates between March 2010 …