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TNS HOLDINGS v. MKI SEC CORP

92 N.Y.2d 335 (1998)

703 N.E.2d 749

680 N.Y.S.2d 891

TNS Holdings, Inc., Formerly Known as TradeNET, Inc., et al., Respondents, v. MKI Securities Corp., Appellant, et al., Respondent.

Court of Appeals of the State of New York.

Decided October 22, 1998.

Attorney(s) appearing for the Case

Friedman Siegelbaum, L. L. P., New York City (Meryl E. Wiener of counsel), for appellant.

Geiger & Geiger, New York City (Omar D. Lopera of counsel), for respondents.

Chief Judge KAYE and Judges BELLACOSA, SMITH, LEVINE and WESLEY concur.

CIPARICK, J.

At issue on this appeal is whether a corporation that is related to, but not itself, a party to an agreement containing an arbitration clause can be compelled to arbitrate a dispute arising from an alleged breach of that agreement. We conclude that, absent a showing of abuse of the corporate form, the nonsignatory corporation cannot be compelled to arbitrate.

I.

Plaintiffs-respondents...

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