Matter of Merchants Preferred Ins. Co. v. Waldo

Summary

The Appellate Division, Second Department, reversed an order permanently staying arbitration of an uninsured motorist claim. It directed a framed-issue hearing to determine whether the claimant's vehicle had physical contact with an alleged hit-and-run vehicle and required a new determination on the remaining petition branches.

Holdings

1. The insurer failed to establish sufficient evidentiary facts concerning Waldo's alleged failure to report the accident or provide a sworn statement because it relied only on unsupported assertions by its attorney.
2. Because the insurer established a preliminary issue concerning physical contact and Waldo's affidavit raised a triable issue of fact on that issue, the court was required to conduct a framed-issue hearing before making a new determination on the petition.

Questions Presented

1. Whether the insurer established sufficient evidentiary facts to justify a stay of arbitration based on Waldo's alleged failure to satisfy the policy's reporting and sworn-statement requirements.
2. Whether the insurer established a preliminary issue concerning physical contact between Waldo's vehicle and the alleged hit-and-run vehicle.
3. Whether Waldo's affidavit raised a triable issue of fact requiring a framed-issue hearing before the court could determine whether arbitration should be permanently stayed.

Disposition

reversed_and_remanded