Garrity v. Lyle Stuart, Inc.

353 N.E.2d 793 (N.Y. 1976)

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Nature of the Case

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Facts

Stuart (D) withheld royalties due to Garrity (P) under a contract in order to coerce P into dropping a prior lawsuit. The contract contained several arbitration provisions, none of which provided for the award of punitive damages. P invoked the arbitration clauses and was awarded compensatory and punitive damages by the arbitrator. That award was confirmed by the court. D appealed.