In re the Arbitration between United Paper Machinery Corp. & Di Carlo

The parties entered in an agreement which contained provision for settling all controversies by arbitration. Respondent served a notice and demand for arbitration of an alleged breach of the agreement and also demanded an accounting. Three days after service of the arbitration demand respondent commenced an action in Supreme Court against appellant and two corporations which respondent alleged were formed and controlled by appellant in violation of his promise to devote his full time to the enterprise which was jointly owned *144by the parties. Appellant moved for an order vacating the…