Littlejohn & Co. v. Charles H. Demarest, Inc.

Headnote

Arbitration — principal and agent — contracts of sale signed by agent of one of parties with provision for arbitration — separate letter from agent stating that disputes would be submitted to arbitration — agent not bound to submit question of its liability to arbitration.

Matter of Littlejohn & Co., Inc.., v. Demarest, Inc., 218 App. Div. 703 , affirmed.

Appeal from an order of the Appellate Division of the Supreme Court in the first judicial department, entered October 15, 1926, which affirmed an order of Special Term denying a motion to compel the respondent herein to proceed to arbitration. The right to arbitration was claimed under the following letter:

" CHARLES H. DEMAREST " 227 Water Street

“ New York, Jan. 30, 1923.

" Messrs. L. Littlejohn & Co., Inc.,

"133 Front Street,

" New York City:

“Gentlemen.— In reply to your letters of January 26th and 27th, I am especially pleased that we have been able to do some business with your firm in Gambier and Pepper. In case of any question as to quality same to be submitted to arbitration in New York, should a private settlement not be agreeable to the shippers, and adjustments, if any due you on the shipments, we will settle with you here for any amount due you.

“ Yours very truly,

" CHARLES H. DEMAREST, INC.,

" By C. H. D.”

Respondent admitted the letter but alleged that in all negotiations and contracts set out in the petition it was the agent of a disclosed principal.