FID. & DEPOSIT v. PARSONS


48 N.Y.2d 127 (1979)

In the Matter of Fidelity and Deposit Company of Maryland, Respondent, v. Parsons & Whittemore Contractors Corporation, Appellant.

Court of Appeals of the State of New York.

Decided October 25, 1979.


Attorney(s) appearing for the Case

Stephen P. H. Rachlis for appellant.

William Hart and Robert M. MacAllister for respondent.

Judges JASEN, WACHTLER, FUCHSBERG and MEYER concur with Judge JONES; Chief Judge COOKE dissents in part and votes to modify in a separate opinion in which Judge GABRIELLI concurs.


JONES, J.

By incorporation in its performance bond of a subcontract containing a broad arbitration clause, the surety company agreed that disputes arising under the subcontract between the general contractor and the subcontractor would be submitted to arbitration and that it would be bound by the determinations made in such arbitration. This being so, the surety company was not entitled to a stay of such arbitration...

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