In re the Arbitration between National Equipment Rental Ltd. & American Pecco Corp.

The agreement between the parties contained a broad arbitration clause to the effect that 1 ‘ Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be settled by arbitration”. Such provision embraced a dispute over whether the seller-installer had performed its obligations. It is immaterial that the buyer in resisting payment contends that the failure to perform properly also entails a violation of law. Otherwise, it would be the rare arbitration agreement that could not be nullified merely by the contention of illegality in performance. Moreover,…