In re the Arbitration between All State Tax Service of Area 5, Inc. & Kerekes Bros.

Appellate Division of the Supreme Court of New York

In re the Arbitration between All State Tax Service of Area 5, Inc. & Kerekes Bros.

34 A.D.2d 935, 312 N.Y.S.2d 166, 1970 N.Y. App. Div. LEXIS 4399

Appellate Division of the Supreme Court of the State of New York·Decided June 23, 1970·Published·Cited by 1 cases

Opinion

Order entered on July 30, 1968, unanimously modified on the law, with $30 costs and disbursements to appellant, so as to deny the motion for a stay in its entirety and to direct that the arbitration proceed on all claims asserted in the demand for arbitration. The agreement, which contains a broad arbitration clause, also contains a restrictive covenant, which forms the basis of claimant’s arbitration proceeding. “ Where there is a broad provision for arbitration, such as we have here, arbitration may be had as to all issues arising under the contract [citing cases] ”. (Matter of Exer cycle Corp. [Maratta], 9 N Y 2d 329, 336.) The question of the validity or invalidity of the restrictive covenant is not one involving public policy and does not involve positive violations of legislative enactments requiring the enjoining of arbitration. (Matter of Exer cycle, supra, p. 335.) What is involved is merely a claim of illegality based upon common-law grounds. Such an issue is for the arbitrator. (Matter of Aimcee Wholesale Corp. [Tomar Prods.], 21 N Y 2d 621.) Concur — Eager, J. P., Capozzoli, McGivern and Markewich, JJ.

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Order entered on July 30, 1968, unanimously modified on the law, with $30 costs and disbursements to appellant, so as to deny the motion for a stay in its entirety and to direct that the arbitration proceed on all claims asserted in the demand for arbitration. The agreement, which contains a broad arbitration clause, also contains a restrictive covenant, which forms the basis of claimant’s arbitration proceeding. “ Where there is a broad provision for arbitration, such as we have here, arbitration may be had as to all issues arising under the contract [citing cases] ”. (Matter of Exer cycle Corp. [Maratta], 9 N Y 2d 329, 336.) The question of the validity or invalidity of the restrictive covenant is not one involving public policy and does not involve positive violations of legislative enactments requiring the enjoining of arbitration. (Matter of Exer cycle, supra, p. 335.) What is involved is merely a claim of illegality based upon common-law grounds. Such an issue is for the arbitrator. (Matter of Aimcee Wholesale Corp. [Tomar Prods.], 21 N Y 2d 621.) Concur — Eager, J. P., Capozzoli, McGivern and Markewich, JJ.

In re the Arbitration between All State Tax Service of Area 5, Inc. & Kerekes Bros., 34 A.D.2d 935, 312 N.Y.S.2d 166, 1970 N.Y. App. Div. LEXIS 4399 (N.Y. Ct. App. 1970).

Pincite

34 A.D.2d 935 (In re the Arbitration between All State Tax Service of Area 5, Inc. & Kerekes Bros.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Opinion

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