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JACK SCHWARTZ, Respondent, v. PAUL SCHMERGEL et al., Defendants, and BRUCE KELLER et al., Appellants.

Order affirmed, with costs.

The appellants have not demonstrated a prima facie defense of equitable estoppel, as they have not shown how their decedent relied to his detriment upon the plaintiff's purportedly fraudulent assignment of his interest in the limited partnership to his son (see, Nassau Trust Co. v. Montrose Concrete Prods. Corp., 56 N.Y.2d 175, 184). The alternative ground upon which the appellants seek dismissal of the plaintiff's complaint as against them, the existence of an arbitration clause in the limited partnership agreement, is not a defense (see, De Sapio v. Kohlmeyer, 35 N.Y.2d 402, 404; American Reserve Ins. Co. v. China Ins. Co., 297 N.Y. 322, 326-327). In any event, the appellants waived their right to arbitrate by virtue of their active participation in the litigation for several years prior to demanding arbitration (see, Sherrill v. Grayco Bldrs., 64 N.Y.2d 261; De Sapio v. Kohlmeyer, supra, p 405). Bracken, J.P., Niehoff, Lawrence and Kunzeman, JJ., concur.

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SCHWARTZ v. SCHMERGEL
(Jun 16, 1986)