Garrity v. Lyle Stuart, Inc

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

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.