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STEINBERG v. W.J. NOLAN & CO., INC.

18 A.D.3d 244 (2005)

793 N.Y.S.2d 913

ARTHUR STEINBERG et al., Plaintiffs, v. W.J. NOLAN & CO., INC., et al., Defendants. W.J. NOLAN & CO., INC., et al., Third-Party Plaintiffs-Respondents, v. LEONARD BOCCIA et al., Third-Party Defendants-Appellants.

Appellate Division of the Supreme Court of the State of New York, First Department.

May 10, 2005.

Although the third-party action is for contribution and indemnification, it is not contractually based, but instead arises out of the allegations in the main complaint (cf. FSP, Inc. v Societe Generale, 350 F.3d 27 [2d Cir 2003]). As such, the third-party dispute stems from underlying allegations of dishonesty on the part of those who trade in securities. Since the controversy involves the Exchange-related business of a member organization...

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