Arbitration Agreement Binding on Decedent's Estate

In Matter of Kalikow, __ A.D.3d __, __ N.Y.S.2d __, 2009 NY Slip Op 00539 (2d Dep't 2009), the Second Department affirmed the Surrogate's holding that a decedent's agreement to arbitrate a controversy is binding on the representative of the decedent's estate and finding that contrary to the estate's contention , the demand to arbitrate does not concern the construction of the decedent's will or the administration of her estate.

The decedent had been a party to a partnership agreement that, inter alia, required the prior written consent of the other partners before a partner could make certain types of transfers of all or part of his partnership interest. The decedent's propounded will specifically bequeathed her 1% general partnership interest to a charitable foundation which also was bequeathed the residuary estate. The residuary estate included the decedent's 50% limited partnership interest. The other partners contended that the purported bequests of the decedent's interests in the Partnership under the propounded will violated the restrictions on transfer contained in the partnership agreement, requiring the prior written consent of the other partners, which was not obtained and served the demand for arbotration which was challenged by the estate.