Matter of Conifer Realty LLC (Envirotech Servs., Inc.) - 2013 NY Slip Op 3375, 106 A.D.3d 1251, 964 N.Y.S.2d 735 (App. Div. 3rd Dept.)

Rule:

On a motion to stay or compel arbitration, our inquiry is limited to ascertaining (1) whether there was a valid agreement to arbitrate; (2) if so, whether the parties complied with the agreement; and (3) whether the underlying claim is timely. 

Facts:

After the owner's multi-unit apartment complex sustained extensive flood damage when a nearby river spilled over its banks, the owner entered into a contract with the contractor for restoration and remediation of the damaged premises. In conjunction therewith, the owner also executed an equipment rental agreement covering the cost of the various water removal and drying equipment required for the project. When the owner, believing that it had been overcharged, paid only a portion of the total amount billed, the contractor filed a demand for arbitration. The owner appealed an order by the Broome County Supreme Court (New York) that denied its application pursuant to CPLR 7503 to stay arbitration between it and the contractor, contending, among other things, that there was no valid agreement to arbitrate.

Issue:

Was there a valid agreement to arbitrate?

Answer:

Yes.

Conclusion:

The appellate court found, inter alia, that the broadly worded arbitration clause was sufficient to demonstrate the parties' intent to submit their dispute to arbitration. The clause was not hidden in the contract. There was nothing inherent in the agreements that suggests the terms were unreasonably favorable to the contractor. The record simply did not support the owner's assertion that it lacked a meaningful choice in retaining the contractor's services. The owner's remaining contentions were examined and found to be lacking in merit. Accordingly, the owner's § 7503 application was properly denied.