158 A.D.2d 657 | N.Y. App. Div. | 1990
The Supreme Court impliedly, and correctly, held that the substantive claims raised in the first and third causes of action of the amended complaint, insofar as they are asserted against the defendant Cathray Construction Corp. (hereinafter Cathray), come within the broad language of the arbitration provision of the contract between the plaintiffs and Cathray, and had to be "severed and stayed”.
However, in an apparent reference to the fourth cause of action in the amended complaint, the Supreme Court held that "the cause of action against cathray for punitive damages shall not be severed and stayed since that cause of action is not subject to arbitration”.
We disagree with this determination.
The fourth cause of action in the amended complaint essentially alleges that the defendants Cathray and Nardone fraudulently induced the plaintiffs to enter into the subject contract with Cathray, and demands, inter alia, punitive damages.
Initially, it must be noted, contrary to the statement of the Supreme Court, that there is no separate cause of action to recover punitive damages (see, Brandenberg v Blue Cross & Blue Shield, 78 AD2d 534). Moreover, the substantive claims