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Kaufman v. William Iselin and Co.
New York Supreme Court, Appellate Division
74 N.Y.S.2d 23 (1947)
J. B. Kaufman Company (Kaufman) (plaintiff) entered into a sales agreement to purchase goods from Crest-Tex Mills, Inc. (Crest-Tex). The sales agreement included an arbitration provision stating that all disputes arising under the contract would be arbitrated. William Iselin Company, Inc. (Iselin) (defendant) acted as Crest-Tex’s factor but was not party to Kaufman and Crest-Tex’s original sales agreement. Crest-Tex assigned its invoice rights to Iselin through written agreement. Kaufman received its merchandise and paid the invoices to Iselin. After payment was processed, Kaufman discovered defects in the goods and found that the products were not in compliance with the terms of the sales agreement. Kaufman notified Crest-Tex and Iselin. Kaufman filed a motion with the state court to compel arbitration of the matter between Kaufman, Crest-Tex, and Iselin. The court granted the motion, and Iselin appealed the arbitration order, claiming that Iselin was not party to the sales agreement or the arbitration clause.
Rule of Law
Holding and Reasoning (Shientag, J.)
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