In a November 30, 2011, decision by Justice Driscoll, the court denied defendants’ motion to dismiss and directed the parties to arbitration on all issues raised in plaintiffs’ complaint. Plaintiffs sued defendants alleging various breaches and fraudulent acts in connection with parties’ contractual relationship under a goods-and-services agreement and a shareholders agreement. The shareholders agreement contained a broad arbitration provision. Defendants moved to dismiss the complaint except as to claims arising out of out of the shareholders agreement, on which the parties should be compelled to arbitration. Plaintiffs opposed, arguing that their claims did not concern the actions of the shareholders. The court found that “the allegations regarding Defendants’ breach of, and fraud regarding, the Goods & Services Agreement bears a reasonable relationship to the subject matter of the Stockholders Agreement, which contains a broad arbitration provision.” Accordingly, the court denied defendants’ motion, stayed the entire action, and directed the parties to arbitration on all of plaintiffs’ claims.
Russo v Time Moving & Stor., Inc., Sup Ct, Nassau County, November 30, 2011, Driscoll, J., Index No. 10035/2011