MATTER OF TOWN OF ISLIP v. STOYE

Order reversed, without costs, and the order of Special Term reinstated in the following memorandum: Upon respondent's failure to file a claim within six months after his cause of action accrued (Town Law, § 65, subd. 3), his potential right to commence an action terminated; and the time limitation that thereupon became effective to bar his action also foreclosed his right to demand arbitration under the contract (CPLR 7502, subd. [b]).

Concur: Judges SCILEPPI, BERGAN, BREITEL, JASEN and GIBSON. Chief Judge FULD and Judge BURKE dissent and vote to affirm on the opinion at the Appellate Division.