New York Court of Appeals

Rembrandt Industries, Inc., Respondent v. Hodges International, Inc., Appellant

January 8, 197638 N.Y.2d 502

Summary

The Court of Appeals affirmed the Appellate Division's denial of the seller's motion to dismiss, holding that the arbitration award resolved the issue of the yarn's defectiveness and therefore bars the buyer's warranty claim under res judicata. The dissent argued the opposite, contending the claim should be dismissed.