Order, Supreme Court, New York County (Barbara R. Kapnick, J.), entered March 26, 2008, which, in an action arising out of a securities industry employment relationship, denied defendant former employer's motion to compel arbitration before the Financial Industry Regulatory Authority (FINRA, f/k/a NAS), unanimously affirmed, with costs.
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and subject to revision before publication in the Official Reports.
Andrias, J.P., Nardelli, Moskowitz, Renwick, Freedman, JJ.
Defendant waived any right to arbitration by failing to raise it as a defense in its answer, asserting counterclaims, making a dispositive motion, and otherwise actively participating in this litigation for almost three years through the completion of extensive disclosure proceedings and the filing of a note of issue, all to the prejudice of plaintiff (see Flores v Lower E. Side Serv. Ctr., Inc., 4 NY3d 363, 371-372 ; see Matter of Advest, Inc. v Wachtel, 253 AD2d 659  [NASD arbitration subject to FAA]). It does not avail defendant that plaintiff did not timely respond to defendant's untimely arbitration demand. Once waived, the right to arbitration cannot be regained (Tengtu Intl. Corp. v Pak Kwan Cheung, 24 AD3d 170, 172 ).
THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.
© 1992-2009 VersusLaw ...