Champion v Merlex Auto Group

Holding The court affirmed the lower court’s denial of the defendant’s motion to compel arbitration, finding that the defendant waived its right to arbitrate by engaging in extensive litigation activities and delaying its request for arbitration for approximately 18 months. The court determined that the defendant’s conduct was inconsistent with an intent to arbitrate, thereby precluding the use of the courtroom as a convenient vestibule to the arbitration hall.

The court’s words

The right to arbitrate, like any other contractual right, may be modified, waived, or abandoned

2026 NY Slip Op 05763, at the official text

there is no inflexible or mechanical rule as to what constitutes a waiver of the right to arbitrate

2026 NY Slip Op 05763, at the official text

Merlex's conduct was inconsistent with an intent to arbitrate and, therefore, the Supreme Court properly determined that Merlex waived its right to arbitration

2026 NY Slip Op 05763, at the official text

The courtroom may not be used as a convenient vestibule to the arbitration hall so as to allow a party to create [a] unique structure combining litigation and arbitration

2026 NY Slip Op 05763, at the official text