## Facts

- Alfred Pickholz worked as a vice president for Florasynth, Inc. under a 1979 employment contract.
- Florasynth terminated Pickholz with six months’ “no cause” notice, and the parties disputed whether Pickholz was owed commissions.
- The contract required arbitration before a three-member panel (party-appointed arbitrators selecting a neutral).
- After Pickholz presented his claim, Florasynth challenged the qualifications of Pickholz’s party-appointed arbitrator.
- The other two arbitrators declined to decide the challenge and resigned, dissolving the panel to permit a new arbitration proceeding.
- A second panel was constituted and issued an award in favor of Florasynth.
- About four months after the award, Florasynth moved in federal district court to confirm the award under the Federal Arbitration Act (FAA).
- Pickholz opposed confirmation, arguing the first panel lacked authority to resign, so the second panel lacked jurisdiction; he had not moved to vacate or modify the award within three months.

## Issues

1. Whether FAA § 12 bars a party from raising vacatur grounds in opposition to a motion to confirm when the party failed to serve notice of a motion to vacate or modify within three months.
2. If not time-barred, whether the first arbitration panel could properly resign and dissolve itself and whether the second panel had jurisdiction to issue a valid award.

## Decision

- The Second Circuit affirmed the judgment confirming the arbitration award.
- The court held that FAA § 12 requires a party seeking vacatur, modification, or correction to serve notice of a motion within three months after the award is filed or delivered.
- After the three-month period expires, a party may not assert vacatur grounds defensively to defeat a motion to confirm.
- Because Pickholz did not timely move to vacate or modify, his objections to the panel’s authority and jurisdiction were not considered.

## Legal Principles

- Under 9 U.S.C. § 9, a court must confirm an arbitration award unless it is vacated, modified, or corrected under §§ 10–11.
- Under 9 U.S.C. § 12, notice of a motion to vacate, modify, or correct must be served within three months; the limitation operates as a bar to later challenges.
- Allowing untimely vacatur arguments in opposition to confirmation would convert confirmation into a delayed merits contest and conflict with the FAA’s finality and efficiency objectives.
- In FAA-governed proceedings, the federal limitations rule controls even if state arbitration practice would allow later collateral challenges.
- Once the § 12 period lapses without a motion, the district court’s role on confirmation is limited and confirmation is generally mandatory.

## Conclusion

The court confirmed the arbitration award because Pickholz failed to serve notice of a motion to vacate or modify within FAA § 12’s three-month period, and he could not avoid that bar by raising vacatur arguments solely to oppose Florasynth’s later motion to confirm.


Florasynth, Inc. v. Pickholz, 750 F.2d 171 (2d Cir. 1984)