Justice Eileen Bransten
Concert promoter Bowery Presents sought to permanently stay and vacate an arbitration demanded by Pires in this Article 75 proceeding arguing it was not a party to an arbitration agreement with Pires. Pires cross-moved to compel arbitration. Bowery entered into a Licensed user Agreement with Ticketmaster, who was to act as Bowery's agent for sale and distribution of tickets to entertainment events. Pires argued Bowery violated the New York State Arts and Cultural Affairs Law, demanding arbitration to recover damages and injunctive relief arising from Bowery's violation of ACAL by employing a paperless ticketing system. Pires argued that while Bowery was not a signatory to the arbitration agreement between Ticketmaster and Pires, Ticketmaster had sufficient authority to bind Bowery to the arbitration, as its agent. The court noted the license agreement provided that each party was not an agent, finding Ticketmaster was Bowery's limited agent, thus Bowery was not bound by the arbitration clause. It stated Bowery did not assume performance of the terms of use agreement, ruling Bowery could not be estopped from avoiding arbitration. Hence, Bowery's request to permanently stay arbitration was granted.
