Party Waived Right to Arbitrate By Suing Rather Than Moving to Compel Arbitration

On January 11, 2019, Justice Schecter of the New York County Commercial Division issued a decision in OCS Dev. Group, LLC v. Midtown Four Stones LLC, 2019 NY Slip Op. 30129(U), holding that the right to arbitrate was waived by beginning a lawsuit rather than moving to compel arbitration, explaining: At the outset, there is no contractual basis for arbitration of the parties' disputes. Even if there were, OCS waived the right to arbitrate by commencing this action and not seeking to compel arbitration. (Internal citations omitted).

Commercial litigation involves more than courts. Disputes often are--by agreement--decided by private arbitrators. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have a question regarding a dispute that is subject to an arbitration agreement.