Matter of Arbitration Between Allstate Insurance Company and Michael J. Cappadonia

Summary

The Appellate Division, Fourth Department reversed an order permanently staying arbitration in a dispute over supplementary uninsured/underinsured motorist coverage. The court held that the insurer's petition was untimely under CPLR 7503(c) because it was filed more than 20 days after the arbitration demand. The court also held that the exception for disputes where the parties never agreed to arbitrate did not apply because the insurance policy contained an arbitration provision.

Holdings

1. A petition to stay arbitration under CPLR 7503(c) must be filed within 20 days of the formal arbitration demand, and Allstate's petition filed more than five months after the demand was untimely.
2. The Matarasso exception to the 20-day deadline did not apply because the policy contained an arbitration provision, even though Allstate argued that no SUM coverage existed for the accident.

Questions Presented

1. Whether Allstate's petition to permanently stay arbitration was time-barred because it was not filed within 20 days of Cappadonia's formal arbitration demand.
2. Whether the exception to CPLR 7503(c)'s 20-day deadline applies when the insurer contends that no SUM coverage exists, where the insurance policy contains an arbitration provision.

Disposition

reversed