In re the Arbitration between Flotill Products, Inc. & Buitoni Foods Corp.

25 Misc. 2d 163, 203 N.Y.S.2d 775, 1960 N.Y. Misc. LEXIS 3260
CourtNew York Supreme Court
DecidedApril 5, 1960
StatusPublished

This text of 25 Misc. 2d 163 (In re the Arbitration between Flotill Products, Inc. & Buitoni Foods Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court 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 Flotill Products, Inc. & Buitoni Foods Corp., 25 Misc. 2d 163, 203 N.Y.S.2d 775, 1960 N.Y. Misc. LEXIS 3260 (N.Y. Super. Ct. 1960).

Opinion

Thomas A. Aueelio, J.

Petitioner is a supplier of canned tomatoes and tomato products. Respondent is a user. It is the latter’s claim that in November and December, 1956, petitioner agreed to furnish an exclusive and continuing supply, and in implementation of such agreement respondent did order certain tomato products from the petitioner in relation to the 1957 Fall crop, to be delivered upon request during 1958. Further order was given to the petitioner to supply certain needs in relation to the 1958 Fall crop. The products delivered from the 1957 crop, respondent says, were sub par. Because of petitioner’s failure, upon demand, to take measures to improve the quality of its shipments stemming from that crop, respondent stored the balance of the 1957 supply on hand, and notified the petitioner it would not accept deliveries stemming from the 1958 crop. Respondent demanded arbitration in November, 1958. Petitioner moved for a stay. The provision for arbitration reads: ‘ ‘ Any controversy arising out of this contract shall be settled by arbitration in New York, Chicago or San Francisco. In the absence of agreement by the parties, arbitration shall be held in the above city nearest to the point where the goods are located. Arbitrations shall be held before and under the rules of the joint arbitration boards appointed or approved by the National-American Wholesale Grocers’ Association, the National Food Brokers’ Association and the National C'anners’ Association.”

[165]*165National Canners’ Association Rule VI provides: “Unless the arbitration clause, submission agreement, or other written agreement between the parties shall otherwise provide, the arbitration shall be held before the Arbitration Board approved for the city nearest to the place where the goods which are the subject matter of the controversy are then located.” There was dispute as to the place for arbitration, respondent contending that a single agreement was reached embracing the relationship between the parties as exclusive supplier and purchaser, and petitioner contending that the orders affecting the 1957 and 1958 crops are separable, each requiring arbitration at the indicated city nearest the location of the particular crop. An interim stay was granted pending the determination of the issue, which was referred for hearing. Following such hearing the court stated in its opinion (17 Misc 2d 499), dated May 5,1959: “ The court finds on a consideration of the documentary evidence that the proof is that the agreement of the parties is clear, there is no ambiguity and accordingly the question of intent and the meaning of the agreement of the parties poses no question of fact. Ultimate decision then is a matter of law (O’Neil Supply Co. v. Petroleum Heat & Power Co., 280 N. Y. 50, 55). The agreement of the parties is evidenced by the exchanges of correspondence. Exhibits E, F and Gr at Special Term, which are petitioner’s Exhibits 1, 2 and 3 at the trial. Petitioner’s Exhibit 2, which is respondent’s letter of January 27, 1958, is confirmed by petitioner’s Exhibit 3, which is petitioner’s letter of February 24, 1958. Together these integrate the original contracts of 1956 which, in turn, integrate rules of the petitioner’s trade associations, particularly those of the National Canners Association. Altogether these documents call for arbitration at the place nearest the location of the goods. Arbitration having been invoked initially by the respondent affecting some goods located in New Jersey, the question of the place of arbitration would seem to be entirely for the arbitrators.” Thereupon Special Term, in finally determining the motion before it, concluded: ‘ ‘ All acts by the parties giving rise to issues in relation to the contract, including the location of the merchandise in dispute and the place of arbitration, are within the exclusive jurisdiction of the arbitrators. To allay the fears of the petitioner, the court observes that the refusal to stay the proceeding in this jurisdiction is not to be considered as affecting the proceeding commenced in California. The place of arbitration, the court reiterates, is to be determined by the arbitrators themselves in accordance with the express provisions of the arbitration clause [166]*166and the Rules of the National Canners Association.” In the meantime the petitioner had instituted an arbitration proceeding in San Francisco, California, pertaining to the 1958 crop.

Pursuant to the demand for arbitration before the court, the respondent gave notice 11 that pursuant to the agreement in writing between the parties hereto dated December 4, 1956, and the renewal of said agreement for the 1958 crop dated January 27, 1958 and the confirmation thereof dated February 24, 1958, Buitoni Foods C'orp., the undersigned, intends to proceed to and conduct an arbitration of the dispute between the said parties ’ ’. The interim stay having been vacated, the arbitration proceeded in October, 1959. On the issue of jurisdiction, the arbitrators took proofs on October 29 and October 30, 1959, and on October 30, 1959 they announced in writing their findings and award, which in effect determined that the place for arbitration with respect to the 1957 crop was New York City, and with respect to the 1958 crop was San Francisco. Thereafter the taking of proofs upon the substance of respondent’s claim as to the 1957 crop proceeded and an award, dated December 17, 1959, was made. Neither the award with respect to jurisdiction nor the latter award complied with statutory requirements as to form. A stipulation of November 6, 1959 had extended the time for award- through December 21, 1959 in order to meet the rule requirement for award within 15 days after close of hearings. By letter of December 29, 1959 of petitioner’s counsel he forwarded to the chairman of the arbitration board a proposed award complying with section 1460 of the Civil Practice Act, which award combines and embodies the substance of the two prior awards. Such final document was signed and executed and acknowledged, and is dated January 4, 1960. Petitioner has not moved for confirmation, but respondent now moves for an order vacating the purported findings and award dated October 30, 1959, the award dated December 17, 1959, and the findings and award dated January 4, 1960, pursuant to sections 1462 and 1463 of the Civil Practice Act, upon the ground that the arbitrators exceeded their powers, and so imperfectly executed them that a mutual, final and definite award upon the subject matter submitted was not made; that the arbitrators were guilty of misconduct in refusing to postpone the hearing upon sufficient cause shown, and in refusing to hear evidence pertinent and material to the controversy. The respondent moves, further, for an order staying the petitioner from taking any proceedings in enforcement of the mentioned awards and from proceeding with arbitration in San Francisco, California.

[167]*167Respondent attacks the preliminary award determining jurisdiction in favor of San Francisco with respect to the 1958 crop. Whether there was one or two contracts or an agreement delineating the relationship between the parties which the orders of 1956 and 1958 merely implemented, as respondent urges, is of no consequence. Respondent had demanded arbitration with respect to claims touching the 1957 and 1958 crops. It had already been found that the 1958 order integrated the 1956 order, which in turn integrated the rules of the petitioner’s trade association. The issue of jurisdiction was submitted for determination to the arbitration board here convened, in pursuance of the demand for arbitration and the order of this court, and this determination was for the board.

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Bluebook (online)
25 Misc. 2d 163, 203 N.Y.S.2d 775, 1960 N.Y. Misc. LEXIS 3260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-flotill-products-inc-buitoni-foods-corp-nysupct-1960.