GREENKY v. AYTES (2007)

Supreme Court, Appellate Division, First Department, New York.

Seth GREENKY, doing business as Green Key Management, Plaintiff-Respondent, v. Rochelle S. AYTES, Defendant-Appellant.

Decided: May 31, 2007

SAXE, J.P., SULLIVAN, GONZALEZ, CATTERSON, KAVANAGH, JJ.

Pryor Cashman Sherman & Flynn LLP, New York (Jacob B. Radcliff of counsel), for appellant. David Scott, New York (Paul Biedka of counsel), for respondent.

Order, Supreme Court, New York County (Marylin G. Diamond, J.), entered September 20, 2006, which, to the extent appealed from, denied defendant's cross motion for a stay of this action pending arbitration, unanimously reversed, on the law, with costs, and the cross motion granted.

As “[a]ctions may be stayed temporarily pending arbitration proceedings where the resolution of the issues in the latter may also resolve and render academic issues in the former” (American Tr. Ins. Co. v. Associated Intl. Ins. Co., 210 A.D.2d 133, 621 N.Y.S.2d 3 [1994], quoting Corbetta Constr. Co. v. Driscoll Co., 17 A.D.2d 176, 179, 233 N.Y.S.2d 225 [1962] ), the court erred in denying the stay herein. The Personal Management Agreement contained a broad arbitration clause, and the exception for “collection of any past due monies” is inapplicable since issues in the underlying arbitration include, inter alia, whether the agreement was void ab initio or, alternatively, had been validly terminated, which would render any claim of monies due moot.

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