In re the Arbitration between Allied Van Lines, Inc.

272 N.E.2d 70, 29 N.Y.2d 35, 323 N.Y.S.2d 693, 1971 N.Y. LEXIS 1242
CourtNew York Court of Appeals
DecidedMay 26, 1971
StatusPublished
Cited by7 cases

This text of 272 N.E.2d 70 (In re the Arbitration between Allied Van Lines, Inc.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Arbitration between Allied Van Lines, Inc., 272 N.E.2d 70, 29 N.Y.2d 35, 323 N.Y.S.2d 693, 1971 N.Y. LEXIS 1242 (N.Y. 1971).

Opinion

Gibson, J.

The appeal requires us to determine the construction and effect of the arbitration agreement contained in an agency contract between respondent (Allied), a carrier engaged in the business of moving household goods, and appellant (Hollander), one of its many agents. The agents operate in allotted territories, serving Allied exclusively by soliciting moving business and providing warehousing, moving vans and services in the conduct of the business thus generated. The agents are Allied’s equal and only shareholders.

The dispute now before us erupted when Allied approved the application of American Imperial Movers, Inc. for a branch agency in a Chicago suburban area in which Hollander had long been Allied’s only agent. Hollander demanded arbitration of the dispute thus engendered, asserting that the agency contract provided that remedy. Allied resisted arbitration on two grounds, first, that the arbitration agreement contained in the contract was limited to disputes arising upon the attempted exercise by Allied of its right, under specified conditions, to terminate the agency contract, and, second, and in any event, that the arbitration of a territorial dispute of this nature would necessarily raise questions under the Sherman Antitrust Act and thus tender nonarbitrable issues, within the proscription of our decision in Matter of Aimcee Wholesale Corp. (Tomar Prods.) (21 NY 2d 621).

Initially, Allied’s motion to stay arbitration was denied, Special Term holding that the contract provision that “ [a]ny dispute between the parties ’ ’ would be arbitrated upon demand of the agent, Hollander, was expressed in “ clear, simple and unequivocal language ”, such as to constitute it “ a broad, all-encompassing arbitration agreement.” At the Appellate Division, however, a different result was reached and that court, although it too found the agreement unambiguous, considered that the only arbitration contemplated was that which Hollander might institute to test any action taken by Allied to terminate the agency for cause. The two courts differed also as to the antitrust issue tendered by Allied. Special Term found [39]*39that no such issue had been demonstrated, but considered that, in any event, appropriate remedies were available should the arbitrators pass upon such an issue and thus exceed their authority. The Appellate Division, on the other hand, held that Hollander’s sole objective was to exclude American from the territory to which Allied had admitted it, thus raising serious and substantial antitrust questions * * * sufficient to justify a permanent stay of the pending arbitration proceeding.”

We conclude, first, that the arbitration clause contained in the agency agreement is, indeed, clear and unambiguous and imposes no limitation upon the agent’s right, consistent with law, to elect arbitration of any dispute arising under the agreement; and, second, that the antitrust question so pervades the questions propounded in Hollander’s notice of intent to arbitrate as to proscribe consideration of any of them, with the exception of that addressed to Allied’s Buie 26, Hollander contending that Allied’s promulgation of that rule without provision for notice and hearing upon branch applications was in violation of the contract.

The agency contract before us is succinct and uncomplicated. It consists of three numbered divisions, the first containing covenants by the carrier (Allied), the second setting forth the covenants undertaken by the agent (Hollander), and the third, the parties’ mutual covenants. We are concerned with the third, which provides (except for indicated omissions, which are of a minor nature and are not here pertinent) as follows:

‘ ‘ 3. The Parties mutually covenant:
3.1 The term hereof shall be for a period of one (1) year from date and thereafter until terminated as follows: Agent may terminate this contract with or without cause upon ninety (90) days written notice to Carrier; Carrier may terminate this contract upon ten (10) days notice to Agent if and only if Agent for a period of ninety (90) days after notice by the Carrier so to do shall fail or refuse to cure or remedy any breach by him of this agreement claimed by the Carrier in such notice, unless within such period the Agent shall either
(1) demand arbitration as provided in section 3.2 hereof * * * ; or
[40]*40(2) file an action or suit in a court of competent jurisdiction to enjoin such termination * * * .
3.2 Any dispute between the parties, upon the written demand of Agent made within a period of ninety (90) days after such dispute shall arise, shall be submitted for decision to three arbitrators selected from the panel of the American Arbitration Association * * * .
3.3 This agreement may be assigned or transferred to any assignee of or successor to Agent who is qualified under the then reasonable standards for agencies established by Carrier.”

In contesting arbitration, Allied contends that the intent of the contract is that only disputes involving termination of the contract shall be arbitrated. This argument rests upon the language conferring upon Allied the right to terminate the contract if Hollander shall fail within 90 days to cure any breach of the contract asserted by Allied, unless Hollander "shall either (1) demand arbitration as provided in section 3.2 hereof * * * or (2) file an action ” (emphasis supplied). We do not consider that simply by referring to the arbitration section 3.2 as the procedural means of resolving an alleged contract breach warranting termination, the parties limited section 3.2 to that sole purpose. On its face, section 3.2 is independent, complete and unrestricted and in terms governs " [a].ny dispute ’ ’. True, as Allied argues, the provision contained in section 3.1 for termination 90 days after Allied shall give notice of a breach, unless within that -period the breach shall be remedied, is consistent with the provision contained in section 3.2 for a 90-day period within which Hollander may require arbitration of a“ dispute ’ ’; hut it is equally consistent with an intent to require notice of arbitration within 90 days, not only of any asserted breach but of any dispute of any nature. It may be remarked, tritely hut nonetheless significantly, that in drafting this basic form of agreement, upon which so great an enterprise largely rested, the parties could have readily and simply limited arbitration under section 3.2 to asserted breaches of contract warranting termination under section 3.1, had that been their intention. Instead, they chose to render arbitrable any “ dispute ”, a word used in section 3.2 for the first time. In short, we find nothing in the contract to justify the imposition, [41]*41by way of construction, of any limitation upon the provision that [a]ny dispute between the parties ” shall be arbitrated, upon Hollander’s demand.

It is appropriate to note, too, that this conclusion would be strongly supported by the uncontradicted extrinsic proof, including that as to certain revisions in the initial draft of the agreement1, if ambiguity were to be found and resort had to extraneous evidence.

We turn, then, to the second ground of Allied’s opposition — that the arbitration would involve the determination of antitrust questions, in contravention of decisional law proscribing the treatment of such issues in arbitration (see Matter of Aimcee Wholesale Corp.

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Bluebook (online)
272 N.E.2d 70, 29 N.Y.2d 35, 323 N.Y.S.2d 693, 1971 N.Y. LEXIS 1242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-allied-van-lines-inc-ny-1971.