Eletson Holdings Inc. v. Levona Holdings Ltd.

Background

Eletson Holdings, Inc. and Eletson Corporation filed a petition seeking confirmation of an arbitration award. Levona Holdings Ltd., the respondent and cross-petitioner, moved for permission to file an amended answer to the petition and a second cross-petition seeking to vacate the award. Levona proposed adding grounds based on fraud, arbitrator misconduct, and the claim that it was unable to present its case. Levona relied on Federal Rule of Civil Procedure 15, which governs amendments to pleadings, and alternatively argued for equitable tolling, a doctrine that can sometimes extend a filing deadline.

Eletson argued that a request to vacate an arbitration award must be made by motion, not by pleading, and that Rule 15 applies only to pleadings. Eletson also argued that equitable tolling is unavailable under the Federal Arbitration Act.

Court's analysis

The court discussed a Second Circuit decision holding that a motion to vacate a sentence under 28 U.S.C. § 2255 could be amended under Rule 15 while the motion remained pending. The court noted similarities between the time limits governing Section 2255 motions and the Federal Arbitration Act's requirement that a motion to vacate an arbitration award be filed within three months after the award is filed or delivered. The court asked whether the reasoning from that decision should likewise apply to a motion to vacate an arbitration award when the proceeding remains pending.

Action taken

The court invited the parties to submit letter briefs, no longer than three single-spaced pages, by August 28, 2024. The order did not resolve Levona's motion, decide whether Rule 15 applies, address equitable tolling, or determine whether the arbitration award should be confirmed or vacated.