In Matter of Brady v. Williams Capital Group, L.P

In In Matter of Brady v. Williams Capital Group, L.P., (14 NY3d 459, 902 NYS2d 1, 928 N.E.2d 383, (2010), a case heavily relied upon by the respondent, at issue was an agreement to arbitrate that provided that the employer and employee equally share the cost of the arbitration. The agreement differed from the AAA rules which require that the employer bear the entire cost of the arbitration (employer pays rule). The trial court held that the arbitration agreement, rather than the AAA rules, applied, requiring the employee to equally share in the cost of the arbitration. (17 Misc 3d 325, 844 NYS2d 584 [2007].) On appeal, the Appellate Division reversed and directed the employer to pay the entire arbitration fee subject to a reallocation of the costs by the arbitrator. (64 AD3d 127, 878 NYS2d 693 [2009].) The Court of Appeals modified the Appellate Division's decision, finding that it was important and relevant to resolve the "financial ability" question. Specifically, the court found that it was important to determine the extent to which the employee was able to incur the costs of the arbitration. The court found instructive federal cases that addressed the same issue.