Summary
In Blum's, Inc. v Ferro Union Corp. (36 AD2d 584 [1st Dept 1971], affd 29 NY2d 689 [1971]), an assignee of a contract for the sale of goods which contained an arbitration clause was compelled to arbitrate the dispute, the Court stating that an "assignee who has taken over the rights of an assignor is bound to an arbitration clause in the assigned contract" (36 AD2d, supra, at 585).
Summary of this case from GMAC CREDIT v. JC Penney Co.Opinion
February 11, 1971
Order and judgment (one paper), Supreme Court, New York County, entered June 30, 1970 staying arbitration, unanimously reversed, on the law, the motion denied, and the parties directed to submit the matter in controversy to arbitration. Appellant shall recover of respondent $30 costs and disbursements of this appeal. The record clearly establishes that petitioner-respondent, Blum's, Inc., is the assignee of a written contract between appellant and American Remesh Corporation and American Rod Wire Trading Corp., which contains a broad arbitration clause. An assignee who has taken over the rights of an assignor is bound to an arbitration clause in the assigned contract. (8 Weinstein-Korn-Miller, N.Y. Civ. Prac., par. 7503.08 and cases therein cited; Matter of Lipman [ Haeuser Shellac Co.], 289 N.Y. 76; Matter of Lowenthal, 199 App. Div. 39, affd. 233 N.Y. 621; Matter of S L Vending Corp. v. 52 Thompkins Ave. Rest., 26 A.D.2d 935; Meinhard Co. v. Allegro Knitting Mills, 28 Misc.2d 590.) Respondent has failed in its attempt to raise a disputed issue of fact by denying in conclusory terms that it is an assignee. The authenticity of the documents establishing respondent as an assignee is not in dispute.
Concur — Stevens, P.J., Capozzoli, McGivern, Nunez and Macken, JJ.