477 F.2d 208 (2nd Cir. 1973), 540, Varley v. Tarrytown Associates, Inc.

Docket Nº:540, 72-2221.
Citation:477 F.2d 208
Party Name:In the Matter of the Arbitration of Controversies between Gerald M. VARLEY, doing business under the tradename and style of Varley Textile Associates, Petitioner-Appellee, v. TARRYTOWN ASSOCIATES, INC., Respondent-Appellant.
Case Date:April 23, 1973
Court:United States Courts of Appeals, Court of Appeals for the Second Circuit
 
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Page 208

477 F.2d 208 (2nd Cir. 1973)

In the Matter of the Arbitration of Controversies between Gerald M. VARLEY, doing business under the tradename and style of Varley Textile Associates, Petitioner-Appellee,

v.

TARRYTOWN ASSOCIATES, INC., Respondent-Appellant.

No. 540, 72-2221.

United States Court of Appeals, Second Circuit.

April 23, 1973

Argued March 13, 1973.

Michael S. Colo, Rocky Mount, N. C. (Lans, Feinberg & Cohen, New York City and Spruill, Trotter & Lane, Rocky Mount, N. C., of counsel), for respondent-appellant.

Daniel Cohen, New York City (Ballon, Stoll & Itzler, New York City, of counsel), for petitioner-appellee.

Before HAYS, MULLIGAN and OAKES, Circuit Judges.

MULLIGAN, Circuit Judge:

This is an appeal from an order and judgment of the United States District Court, Southern District of New York, Charles L. Brieant, Jr., United States District Judge, entered on August 13,

Page 209

1972, confirming a commercial arbitration award in favor of petitioner, Gerald M. Varley, doing business under the tradename and style of Varley Textile Associates (Varley) against the respondent, Tarrytown Associates, Inc. (Tarrytown) in the sum of $11,000. 346 F.Supp. 331 (1972). Reversed.

Varley is a textile consultant who entered into an oral agreement with Tarrytown which agreed to retain his company for a twelve month period at a rate of $1000 per month plus expenses and a per diem fee. Varley reduced the terms to writing in the form of a letter which was mailed to Tarrytown at its home office in Rocky Mount, North Carolina. The letter contained an arbitration clause not previously discussed but accepted by Tarrytown when the agreement was finally executed in North Carolina on March 3, 1971. The clause provided:

Any controversy arising under this agreement or breach thereof shall be settled by arbitration pursuant to the rules of the American Arbitration Association.

On April 29, 1971 Varley was paid $1000 plus his expenses and Tarrytown advised him that it was terminating the contract. Varley did not agree and on September 23, 1971 submitted the dispute to the American Arbitration Association. On October 20, 1971 Tarrytown advised Varley and the American Arbitration Association that it elected to rescind its agreement to arbitrate under the law of North Carolina which, according to respondent, considers agreements to arbitrate future...

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