In Kerins v. Prudential Prop. & Cas., 185 AD2d 403, 585 N.Y.S.2d 637 (3d Dept 1992), an arbitration was held between the defendant and a third party, and a provision in the master arbitration agreement governing the arbitration provided that "awards thereunder were for the purpose of the dispute submitted only and had no collateral estoppel effect." (185 AD2d at 403).
The plaintiff subsequently sued the defendant and asserted that the arbitration award collaterally estopped the defendant from contesting his claim.
The court found that the limiting provision was valid as against a non-party to the arbitration, and thus dismissed the part of the complaint alleging collateral estoppel.