IN THE MATTER OF WILLIAM L. STECK, JR., APPELLANT, AND STATE FARM INSURANCE
COMPANY, RESPONDENT.
88 N.Y.2d 827, 666 N.E.2d 554, 643 N.Y.S.2d 961 (1996).
April 25, 1996
4 No. 79(1996 NY Int. 88)
Decided April 25, 1996
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This memorandum is uncorrected and subject to revision before
publication in the New York Reports.
Richard P. Amico, for Appellant.
Michael T. Hagelin, for Respondent.
MEMORANDUM:
The order of the Appellate Division should be reversed, with costs,
and the petition to stay arbitration denied.
On August 17, 1992, appellant, while driving a vehicle, was seriously
injured in an automobile accident. He recovered $300,000 to settle the
claim, the maximum coverage of the tortfeasor driver's insurance
policy. Appellant possessed automobile coverage with respondent State
Farm Insurance Company, with liability coverage limits of
$100,000/$300,000 and underinsurance coverage of $100,000. Respondent
denied appellant's claim for underinsurance coverage, stating that
appellant had recovered fully from the other motorist's policy and
that since that policy exceeded appellant's policy, appellant was not
entitled to underinsurance coverage.
On October 15, 1993, appellant served a demand to arbitrate the
underinsurance claim. Respondent served a motion to stay arbitration,
dated February 15, 1994, more than four months after service of the
demand, and sought a permanent stay of arbitration, maintaining that
appellant was not entitled to underinsurance coverage. Supreme Court
stayed the arbitration, concluding that appellant was not entitled to
underinsurance coverage. The Appellate Division affirmed, with one
justice dissenting, finding that where an insured's policy limits do
not exceed the policy limits of the other vehicle, there is no
underinsurance coverage.
Section 7503(c) of the CPLR requires a party, once served with a
demand for arbitration, to move to stay such arbitration within 20
days of service of such demand, else he or she is precluded from
SNIPPETS:
This memorandum is uncorrected and subject to revision before publication in the New York
Richard P. Amico, for Appellant.
Michael T. Hagelin, for Respondent.
The order of the Appellate Division should be reversed, with costs, and the petition to stay
He recovered $300,000 to settle the claim, the maximum coverage of the tortfeasor driver's
Appellant possessed automobile coverage with respondent State Farm Insurance Company, with
Respondent denied appellant's claim for underinsurance coverage, stating that appellant had
Respondent served a motion to stay arbitration, dated February 15, 1994, more than four
concluding that appellant was not entitled to underinsurance coverage.
The Appellate Division affirmed, with one justice dissenting, finding that where an insured's
Section 7503of the CPLR requires a party, once served with a demand for arbitration, to move
In Matter of Matarasso (Continental Cas.
this Court addressed the issue of whether a motion to stay arbitration may ever properly be
In Matarasso, the insured served a demand for arbitration upon the respondent Continental
Continental responded after 60 days and moved for a stay of arbitration on the ground that
Matarasso claimed that Continental's failure to respond within the 20-day period of CPLR
In our holding, we articulated an exception to the 20-day period of CPLR 7503concluding:
the parties do not dispute that appellant's policy contained an agreement to arbitrate.
Respondent's argument that because the other vehicle's insurance exceeds appellant's
respondent's contention is outside the exception articulated by this Court in Matarasso and
Chief Judge Kaye and Judges Simons, Titone, Bellacosa, Smith, Levine and Ciparick concur.
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