Matter of Metropolitan Transp. Auth. v. Westfield Fulton Ctr., LLC

Summary

The Appellate Division, First Department, unanimously affirmed dismissal of the Metropolitan Transportation Authority's petition to stay arbitration involving Westfield Fulton Center, LLC. The court held that the lease did not clearly and unmistakably assign arbitrability questions to the arbitrator, but that the claims and requested relief fell within the lease's broad arbitration provision.

Holdings

1. The court, rather than the arbitrator, correctly decided whether Westfield's claims came within the scope of the lease's arbitration provisions because the lease did not clearly and unmistakably delegate the question of arbitrability to the arbitrator.
2. The arbitration should not be stayed merely because some requested relief may fall outside the narrow arbitration clause, so long as the arbitrator retains power to fashion some relief on the issue submitted for arbitration.
3. Westfield's request for attorneys' fees under section 23.1 of the lease could be addressed in the arbitration and did not provide a basis for staying it.

Questions Presented

1. Whether the court or the arbitrator should decide whether Westfield's claims fell within the scope of the lease's arbitration provisions.
2. Whether the scope of the lease's arbitration provisions required a stay of arbitration because some requested relief appeared to fall outside a narrow arbitration clause.
3. Whether Westfield's request for attorneys' fees could be addressed in the arbitration.

Disposition

affirmed