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Matter of First Montauk Sec. Corp. v. Chiulli

Appellate Division of the Supreme Court of New York, Second Department
Dec 22, 1997
245 A.D.2d 507 (N.Y. App. Div. 1997)

Opinion

December 22, 1997

Appeal from the Supreme Court, Nassau County (Lockman, J.).


Ordered that the order is affirmed, with costs.

"Preemptive judicial intervention in the arbitration process is warranted where the arbitrator [can]not grant any relief without violating public policy" ( Matter of Imperial House [Local 32B-32J], 154 A.D.2d 534, 535). The decisional law clearly indicates that a discharged debtor cannot pursue a claim which it failed to disclose in its schedule of assets filed with the bankruptcy court ( see, Dynamics Corp. v. Marine Midland Bank-N.Y., 69 N.Y.2d 191; Robinson v. Wiertel Constr., 185 A.D.2d 664; In re Drexel Burnham Lambert Group, 160 B.R. 508). Here, the appellant, who failed to list his claim against the petitioner on a timely basis, is seeking to pursue that claim. Since the appellant's pursuit of his claim is against public policy, any remedy fashioned by the arbitrator would be violative of that policy. Thus, the application for a stay of arbitration was properly granted.

Bracken, J. P., Thompson, Goldstein and Lerner, JJ., concur.


Summaries of

Matter of First Montauk Sec. Corp. v. Chiulli

Appellate Division of the Supreme Court of New York, Second Department
Dec 22, 1997
245 A.D.2d 507 (N.Y. App. Div. 1997)
Case details for

Matter of First Montauk Sec. Corp. v. Chiulli

Case Details

Full title:In the Matter of FIRST MONTAUK SECURITIES CORP., Respondent v. JOSEPH G…

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

Date published: Dec 22, 1997

Citations

245 A.D.2d 507 (N.Y. App. Div. 1997)
666 N.Y.S.2d 33

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