Judge Shira Scheindlin
B/E Aerospace makes interior products for planes. Jet Aviation, formerly Midcoast Aviation, installs interiors on private jets. Midcoast contracted to pay B/E $1.4 million for seating it would install in compliance with Federal Aviation Administration regulations. Due to incorrect installation instructions from B/E, the seating was not certified the FAA. Midcoast incurred over $3.3 million in costs and customer payments. B/E refused repayment. An arbitrator awarded Midcoast $3.3 million, including $84,543 in legal fees. Confirming the award, the court denied B/E’s petition to vacate it on the ground that the panel awarded damages based on duplicative contract and tort claims in disregard of New York law. The panel found that Midcoast reasonably relied on B/E’s specialized expertisepresented prior to the agreement’s signingcreating an independent legal duty to Midcoast beyond their contractual relationship. In denying vacatur of the award’s attorney fee component, the court noted that both B/E and Midcoast had sought an award of fees, which made the award permissible under Rule 43(d) of the American Arbitration Association.
