Badme v. AECOM

Summary

The Appellate Division, First Department, unanimously affirmed an order compelling arbitration and staying an employment-related action. It held that the broad arbitration provision and incorporation of AAA rules delegated arbitrability issues, including whether expiration of the employment term affected enforceability, to the arbitrators. The court further held that the motion court should not have addressed the merits but properly stayed the entire action pending the arbitrators’ determination.

Holdings

1. Because the employment agreement contained a broad arbitration provision and incorporated AAA rules delegating jurisdictional questions to the arbitration tribunal, the effect of expiration of the employment term on the arbitration obligation was an issue of arbitrability for the arbitrators to determine.
2. The action was properly stayed in its entirety pending the arbitrators' determination of the arbitrability issues because at least some claims plainly fell within the scope of the employment agreement.
3. The motion court should not have addressed the merits after recognizing the effect of the broad arbitration provision and compelling arbitration.

Questions Presented

1. Whether the effect of expiration of the employment term on the enforceability of the arbitration provision was an arbitrability issue for the arbitrators.
2. Whether the action was properly stayed in its entirety pending the arbitrators' determination of arbitrability.
3. Whether the motion court improperly addressed the merits after granting the motion to compel arbitration.

Disposition

affirmed