Arbitration is a matter of contract, grounded in an agreement between the parties. Thus, when deciding whether the parties agreed to arbitrate a certain matter, the court will apply the principles that govern the formation of contracts. If the parties have broadly agreed to arbitrate any dispute arising out of a contract, the court's sole inquiry is whether there is a reasonable relationship between the subject matter of the dispute and the general subject matter of the underlying contract.
Under contract law, the general rule is that only a party to an arbitration agreement is bound by or may enforce the agreement. However, an assignee of a contract may avail itself of an arbitration clause contained therein.
Breslin Brookhaven, LLC v. Rose, NY Slip Op 05156 (2d Dep't September 2, 2026)