Arbitration Panel Properly Applied Governing Law, Did Not Exceed its Powers, 2nd Cir. Affirms

NEW YORK — The 2nd Circuit U.S. Court of Appeals affirmed confirmation of a $5.4 million arbitration award issued to Israeli telemedicine provider Aerotel Ltd., agreeing with the lower court that the arbitration panel properly applied the governing law in reaching the award.

The panel’s decision to deny specific performance and instead grant lost profit damages was not in excess of its powers under the Federal Arbitration Act, the appellate court found.

Aerotel entered into a settlement agreement with IDT Corp., another telecommunications provider and distributor of prepaid calling cards, to resolve an earlier dispute. The contract required IDT …