Is Assignee of a Contract Bound to An Arbitration Clause ?
In Blum's, Inc. v. Ferro Union Corp. (36 AD2d 584 [1st Dept 1971], affd 29 NY2d 689 ), an assignee of a contract for the sale of goods which contained an arbitration clause was compelled to arbitrate the dispute, the Court stating that an "assignee who has taken over the rights of an assignor is bound to an arbitration clause in the assigned contract" (36 AD2d, supra, at 585).
However, in that case, it appears that the assignee assumed the obligations of the assigned contract.
In Matter of Lipman (289 NY 76 ), it was held that an assignee could compel arbitration pursuant to a provision therefor in the assigned contract. (See also, Comprehensive Foot Care Group v. Lincoln Natl. Life, 135 Misc 2d 862 [Civ Ct, NY County 1987].)