X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Jonathan A. Dachs Jonathan A. Dachs

It is well-established, and well-known, that upon receipt of a properly served Demand for Arbitration or Notice of Intention to Arbitrate, the insurer must promptly determine whether or not, in its view, the claim presented is valid and meritorious. If the insurer answers this question in the affirmative, it will allow the claim to proceed to arbitration in accordance with the arbitration provisions of its applicable endorsement. If, on the other hand, the insurer determines that the claimant presents preliminary issues that should be resolved prior to arbitration, it must move in court to stay the arbitration, either permanently, or temporarily, pending a determination of those preliminary, or threshold, issues. The failure of the insured to make a timely motion to stay arbitration—i.e., within 20 days after receipt of the Demand for Arbitration or Notice of Intention to Arbitrate, pursuant to CPLR 7503(c)—will result in a preclusion of the right to have the arbitration stayed while the court determines the preliminary issues, and a waiver of the right to stay arbitration upon any such issue or ground. (A waiver of the preliminary issues has been held to be the equivalent of a determination that the insured claimant has complied with the policy and that he or she was, in fact, involved in an accident with an uninsured (or underinsured) motorist. Aetna Life & Cas. Co. v. Stekardis, 34 N.Y.2d 182 (1974). See Steck v. State Farm Ins. Co., 89 N.Y.2d 1082 (1996).) Somewhat less familiar to practitioners is the notion that a failure timely to seek a stay of arbitration is not the only way that an insurer may waive that right.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Law Firms Mentioned

 

America's Claims Executive (ACE) 2020Event

ACE Leadership Forum & Expo is the annual conference for Senior Claims Executives in Insurance organizations.

Get More Information
 

Banking Litigation & Regulation Forum 2020Event

Delivers the key insights and practical solutions to acutely address the complex minefield of UK banking litigation & regulation.

Get More Information
 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.