Bravo Knits, Inc. v. De Young

Full title: BRAVO KNITS, INC., Respondent-Appellant, v. DONALD DE YOUNG et al.…

Court: Appellate Division of the Supreme Court of New York, First Department

Date published: Dec 15, 1970

35 A.D.2d 932 (N.Y. App. Div. 1970)

Opinion

December 15, 1970

Order, Supreme Court, New York County, entered on July 27, 1970, denying motion for an injunction and denying cross motion to dismiss and to stay the action pending arbitration, unanimously modified, on the law, to grant the cross motion of defendant De Young for a stay of the action pending arbitration and sever the action as to said defendant, and as so modified, affirmed, without costs and without disbursements. We agree with Special Term as to the absence of a proper showing of grounds for an injunction pendente lite and as to the propriety of the causes of action under attack. It is otherwise as to defendant De Young's right to arbitrate. This defendant was the only employee sued who had a written contract with the plaintiff. The contract contained a broad arbitration clause which covers "All controversies arising out of, or relating to this contract". Bearing in mind that the contract is one of employment and that the claims are that this defendant transgressed against the duties of loyalty inherent in the employer-employee relationship, it is clear that the controversy arises out of and relates to the contract which is the genesis of the relationship and the consequent duty. It is of no moment that the causes of action are framed in commercial tort. Such claims are arbitrable (Russell, Arbitration [16th ed.], p. 45; cf. Matter of Amphenol Corp. [ Microlab], 49 Misc.2d 46, affd. 25 A.D.2d 497).

Concur — McGivern, J.P., Markewich, Steuer and Tilzer, JJ.