Majority
Order of Special Term unanimously modified insofar as it granted a stay against the corporation from proceeding with the arbitration and the motion in respect to the corporation denied and, as so modified, affirmed, with $20 costs and disbursements to respondents-appellants. The corporation is bound by the preineorporation agreement (Morgan v. Bon Bon Go., 222 N. Y. 22 , 27; Jermyn v. Searing, 225 N. Y. 525 , 538; Matter of Super Trading Co., 22 F. 2d 480 , 482). The issues proposed are arbitrable. (Martocci v. Martocci, 42 N. Y. S. 2d 222 , affd. 266 App. Div. 840 ; Matter of Carl [Weissman], 263 App. Div. 887 .) Matter of Allied Fruit & Extract Co. ( 243 App. Div. 52 ) must be read in the light of the affirmance in this court of the Special Term in Martocci v. Martocci (supra). Settle order on notice. Present — • Peck, P. J., Dore, Van Voorhis and Breitel, JJ.
Cases cited
- Morgan v. Bon Bon Co. 222 N. Y. 22 at 27 p. 963
- Jermyn v. Searing 225 N. Y. 525 at 538 p. 963