Originally from Dispute Resolution Journal

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MOTION TO STAY ARBITRATION — THIRD-PARTY CLAIM — DISPUTE OVER THEATRICAL AGENCY COMMISSIONS

Where a theatrical agent sought arbitration of a commission dispute against an entertainer who in turn sought to compel arbitration against another agent to whom the disputed commissions were paid, the court stayed the arbitration under entertainer's demand, finding no arbitration clause between them and no authority to use the CPLR third-party rules. The entertainer contended that as a result of arbitration brought against him he might have to pay a commission to both agents. He further argued that the agency against whom he sought arbitration, the agency seeking arbitration against him, and he himself, are all bound by the arbitration regulations of AFTRA, an association of theatrical artists and agents. The court noted that the issue was clouded by the existence of a wholly-owned corporation which owned the employment contract out of which the commissions accrued. This corporation was not an AFTRA member and its contract did not contain an arbitration clause. Thus, while sympathetic to the entertainer's position the court could not compel arbitration where no direct contract existed and could not utilize statutory impleading roles as arbitration was no longer considered a special proceeding.

William Morris Agency, Inc. v. Cambridge; Misc.2d , 328 N.Y.S.2d 62 (Sup. Ct. N.Y. Cty. 1971).