In the Matter of Fidelity and Deposit Company of Maryland, Respondent v. Parsons & Whittemore Contractors…

Summary

The New York Court of Appeals held that Fidelity, as surety, is not entitled to a stay of arbitration of the dispute between Parsons and Central because it had, by incorporating the subcontract, agreed to be bound by any arbitration award concerning that dispute. The Court also clarified that separate controversies arising under the performance bond itself are not subject to arbitration absent an explicit clause.