Summary
In Morfopoulos, the Appellate Division, First Department affirmed the trial court's denial of a stay of arbitration, where the party seeking to avoid arbitration submitted a notice of appearance in the arbitration; participated in the selection of the arbitrator; agreed to have the issue of arbitrability determined by the arbitrator; sought an extension of time to submit its brief; and waited until the date on which the submission was due before seeking a stay.
Summary of this case from KELLY v. OXFORD HEALTH PLANS (NY), INC.Opinion
March 4, 1993
Appeal from the Supreme Court, New York County (Harold Baer, Jr., J.).
We agree with the IAS Court that petitioners, although non-signatories to the arbitration agreement in issue to which the first-named petitioner's eponymous corporation was a party (see, Keter Publ. v. Shapolsky, 189 A.D.2d 591), waived their right to have the issue of arbitrability judicially determined by actively participating in the arbitration before seeking a stay (Matter of National Cash Register Co. [Wilson], 8 N.Y.2d 377, 382-383; compare, Matter of Consolidated Carting Corp. [Local No. 282], 28 A.D.2d 667). Such active participation consisted of petitioners' submitting a notice of appearance in the arbitration, participating in the selection of the arbitrator, agreeing to the tribunal's suggestion that the issue of arbitrability be determined by the arbitrator selected, seeking an extension of time within which to file the requested brief on the issue of arbitrability, and then waiting until after the time for submission of that brief had expired before seeking the instant stay of arbitration more than three months after commencement of the arbitration proceeding. The waiver is not affected by the defect in respondent's demand for arbitration in not stating, as required by CPLR 7503 (c), that a failure to apply for a stay within twenty days would preclude an objection that a valid agreement to arbitrate was not made (cf., Matter of Standard Steel Section v. Royal Guard Fence Co., 62 A.D.2d 1040, lv denied 45 N.Y.2d 707; 8 Weinstein-Korn-Miller, N.Y. Civ Prac ¶ 7503.30).
Concur — Sullivan, J.P., Wallach, Kupferman and Ross, JJ.