Opinion
November 5, 1952.
Present — Peck, P.J., Dore, Van Voorhis and Breitel, JJ.
Order of Special Term unanimously modified insofar as it granted a stay against the corporation from proceeding with the arbitration and the motion in respect to the corporation denied and, as so modified, affirmed, with $20 costs and disbursements to respondents-appellants. The corporation is bound by the preincorporation agreement ( Morgan v. Bon Bon Co., 222 N.Y. 22, 27; Jermyn v. Searing, 225 N.Y. 525, 538; Matter of Super Trading Co., 22 F.2d 480, 482). The issues proposed are arbitrable. ( Martocci v. Martocci, 42 N.Y.S.2d 222, affd. 266 App. Div. 840; Matter of Carl [ Weissman], 263 App. Div. 887. ) Matter of Allied Fruit Extract Co. ( 243 App. Div. 52) must be read in the light of the affirmance in this court of the Special Term in Martocci v. Martocci ( supra). Settle order on notice.