LLC v. LLP (2021)

Case No.2020–03835

Capuder Fazio Giacoia LLP, New York (Douglas Capuder of counsel), for appellant.

Venable LLP, New York (Lawrence H. Cooke II of counsel), for respondent.

Order, Supreme Court, New York County (Joel Cohen, J.), entered on or about August 18, 2020, which, inter alia, granted defendant's motion to stay the action and refer all claims to arbitration and denied plaintiff's cross motion for expedited discovery and a jury trial, unanimously affirmed, without costs.

Where, as here, the parties have a broad arbitration clause and the rules under which they agree to arbitrate provide for the arbitrator to decide arbitrability, those issues are not for the court (Zachariou v. Manios, 68 AD3d 539 [1st Dept 2009] ).  The court's role in such a case is solely to ascertain that a valid agreement to arbitrate has been reached, applying contract law principles (see Chelsea Sq. Textiles, Inc. v Bombay Dyeing & Mfg. Co., 189 F3d 289, 295–296 [2d Cir1999] ).  Plaintiff's contentions all go to the scope of the arbitration clause, not its existence or validity.  Thus, the matter was properly sent to arbitration, and the action stayed.

Plaintiff also complained that defendant offered a 2018 nondisclosure agreement for the first time in reply.  However, plaintiff did not object to the discussion or consideration of the agreement.  Furthermore, given that defendant argued solely on the face of that agreement, the argument could have been raised for the first time, even on appeal (Chateau D' If Corp. v. City of New York, 219 A.D.2d 205, 209 [1st Dept 1996], lv denied 88 N.Y.2d 811 [1996] ).