Summary
In Alsy Corp. v. Gindel, 197 AD2d 492 (1st Dep't 1993), the court went so far as to find, based on Nationwide, that the "reasonable relationship" test had been satisfied, despite the existence of multiple contracts: "Indeed, there is no question that there is `a reasonable relationship between the subject matter of the dispute and the general subject matter of the underlying contract[s]'."
Summary of this case from Adam Jacobs Assoc v. Cred. Suisse First BostonOpinion
October 28, 1993
Appeal from the Supreme Court, New York County (Martin Schoenfeld, J.).
In light of the obvious interrelation between the instant Employment Agreements, Certificate of Incorporation, and Termination Agreements, and since the arbitration clauses contained in the Termination Agreements pertain to "any dispute or disagreement arising out of or in connection with" the Termination Agreements, the instant controversy concerning petitioner's alleged obligation to indemnify respondents for expenses incurred in the defense of claims asserted against them in the Surrey action, falls within the broad arbitration clauses (see, Matter of Nationwide Gen. Ins. Co. v. Investors Ins. Co., 37 N.Y.2d 91). Indeed, there is no question that there is "a reasonable relationship between the subject matter of the dispute and the general subject matter of the underlying contract[s]" (supra, at 96).
We also agree with the IAS Court that the instant controversy is ripe for arbitration even though the Surrey action has not been finally adjudicated. Significant attorneys' fees have already been incurred by respondents in the defense of the Surrey lawsuit.
Concur — Wallach, J.P., Ross, Asch and Rubin, JJ.