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Whitelock v. Morgan Stanley Smith Barney, LLCWhitelock v. Morgan Stanley Smith Barney, LLC

Appellate Division of the Supreme Court of the State of New York
Mar 29, 2011
Versions:82 A.D.3d 1212
919 N.Y.S.2d 857
919 N.Y.2d 857

“[I]n the commercial context generally, the rule is clear that unless the agreement to arbitrate expressly and unequivocally encompasses the subject matter of the particular dispute, a party cannot be compelled to forego the right to seek judicial relief and instead submit to arbitration” (Bowmer v Bowmer, 50 NY2d 288, 293-294 [1980]; see Sammarco v Pepsi-Cola Bottling Co. N.Y., 1 AD3d 341, 342 [2003]; Computer Assoc. Intl. v Com-Tech Assoc., 239 AD2d 379, 380-381 [1997]). The burden of proof is on the party seeking arbitration (see Matter of Allstate Ins. Co. v Roseboro, 247 AD2d 379, 380 [1998]; Matter of American Centennial Ins. Co. v Williams, 233 AD2d 320 [1996]). Here, the defendants satisfied their burden of establishing the existence of a valid agreement to arbitrate which expressly and unequivocally encompassed the subject matter of the plaintiff‘s claims (see Bowmer v Bowmer, 50 NY2d at 293-294; Matter of Allstate Ins. Co. v Roseboro, 247 AD2d at 380). Accordingly, the Supreme Court properly granted the defendants’ motion to stay the action and compel arbitration.

Covello, J.P., Dickerson, Eng and Sgroi, JJ., concur.

Case Details

Case Name: Whitelock v. Morgan Stanley Smith Barney, LLC
Court Name: Appellate Division of the Supreme Court of the State of New York
Date Published: Mar 29, 2011
Citations: 82 A.D.3d 1212; 919 N.Y.S.2d 857; 919 N.Y.2d 857
Court Abbreviation: N.Y. App. Div.
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