On December 21, 2022, the Second Department issued a decision in CRC Ins. Servs., Inc. v. Kullman, 2022 NY Slip Op. 07216, holding that a plaintiff waived the right to demand arbitration by bringing a lawsuit, explaining:
As the Supreme Court properly determined, the issues raised in the complaint and the counterclaims are sufficiently intertwined to make one trial of all causes of action appropriate. However, contrary to the court’s determination, the plaintiff waived its right to seek enforcement of the arbitration provision of the employment agreement by commencing the instant action. Accordingly, the court should have denied the plaintiff’s motion to compel arbitration of the counterclaims.
(Internal quotations and citations omitted).