Summary
In Archard, the six-year eligibility period was found to commence when "respondents executed subscription agreements with respect to the purchase of limited partnership interests".
Summary of this case from Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Sumi OhnumaOpinion
January 13, 1992
Appeal from the Supreme Court, Suffolk County (Gerard, J.).
Ordered that the appeal from the order entered January 29, 1990, is dismissed, as that order was superseded by the order entered April 9, 1990, made upon renewal and reargument; and it is further,
Ordered that the order entered April 9, 1990, is reversed insofar as appealed from, on the law, the order entered January 29, 1990, is vacated, the applications to stay arbitration are granted, and arbitration is permanently stayed; and it is further,
Ordered that the appellants are awarded one bill of costs.
In or before July 1982, the respondents executed subscription agreements with respect to the purchase of limited partnership interests in Outer Space Place, a partnership formed for the purpose of acquiring certain property in Long Island, allegedly sold to them by Prudential Bache Securities, through the agency of the individual appellants. Thereafter, on December 30, 1988, more than six years after the execution of the subscription agreements, the respondents commenced arbitration proceedings with the National Association of Security Dealers (hereinafter NASD) alleging in their supporting papers claims for damages arising out of the alleged fraudulent conduct of the appellants.
The claims asserted by the respondents arose more than six years prior to the commencement of the arbitration proceeding and are therefore time barred, and may not be submitted to arbitration with the NASD (NASD Code of Arbitration Procedure § 15; see also, PaineWebber, Inc. v. Farnem, 870 F.2d 1286; Matter of County of Rockland [Trimiano Constr. Co.], 51 N.Y.2d 1). Kunzeman, J.P., Sullivan, Eiber and O'Brien, JJ., concur.