In re the Arbitration between Tarpon Cove, Ltd. & Taylor Woodrow Blitman Property Corp. of Florida
Tarpon, a Florida property owner, entered a management and development agreement with Taylor, which included a New York arbitration clause. After Tarpon unilaterally terminated the agreement, a dispute arose over termination and reimbursement costs. Tarpon initiated an action in Florida, prompting Taylor to demand arbitration for both parties' claims. Special Term initially granted Tarpon's motion to stay arbitration, ruling the clause was nullified by termination. The appellate court reversed, holding that a unilateral termination does not extinguish a broad arbitration clause and that issues regarding the agreement's termination and alleged breaches are matters for arbitration. The court also ordered a stay of the related Florida action pending arbitration.