Summary
affirming order which denied motion to compel filed by non-signatory because nothing in the arbitratior clause suggested that the sublease signatories intended to confer on the non-signatory movant the right to compel arbitration of disputes arising under the sublease; stating, "Under New York law, the right to compel arbitration does not extend to a party that has not signed the agreement pursuant to which arbitration is sought unless the right of the nonsignatory is expressly provided for in the agreement."
Summary of this case from Axa Equitable Life Ins. Co. v. Infinity Fin. Grp., LLCOpinion
1970
October 22, 2002.
Order, Supreme Court, New York County (Louise Gruner Gans, J.), entered July 10, 2001, which, inter alia, granted third-party plaintiffs' motion to stay arbitration and denied the cross motion of third-party defendants Feathered Nest, Inc. and David Hench to compel arbitration, unanimously affirmed, without costs.
ROBERT RINGER, for third-party plaintiffs-respondents.
NANCY PACKES, for defendants-appellants.
Before: Tom, J.P., Ellerin, Lerner, Rubin, Gonzalez, JJ.
Contrary to the contentions of Feathered Nest and Hench, this matter is not governed by the Federal Arbitration Act and Federal law, since it does not involve a transaction in interstate commerce (see Federal Arbitration Act, 9 U.S.C. § 2).
Under New York Law, the right to compel arbitration does not extend to a party that has not signed the agreement pursuant to which arbitration is sought unless the right of the nonsignatory is expressly provided for in the agreement (see Matter of Waldron [Goddess], 61 N.Y.2d 181, 185;Matter of H.I.G. Capital Mgt., Inc. v. Ligator, 233 A.D.2d 270). While the hold harmless clause in the sublease containing the arbitration clause here at issue did benefit Feathered Nest, nothing in the arbitration clause itself suggests that the sublease signatories intended to confer upon Feathered Nest the right to compel arbitration of disputes arising under the sublease (see County of Onondaga v. U.S. Sprint Communications Co., 192 A.D.2d 1108).
THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.