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Paxton Natl. Ins. Co. v. Merchants Mut. Ins. Co.

Appellate Division of the Supreme Court of New York, Fourth Department
Feb 20, 1980
74 A.D.2d 715 (N.Y. App. Div. 1980)

Opinion

February 20, 1980

Appeal from the Erie Supreme Court.

Present — Cardamone, J.P., Simons, Hancock, Jr., Callahan and Doerr, JJ.


Order unanimously reversed, with costs, and petition dismissed. Memorandum: After a collision between automobiles insured by two companies respondent Paxton National Insurance Co. paid $118,180.48 in first-party benefits in accordance with the New York Comprehensive Automobile Insurance Reparations Act (Insurance Law, art 18). Four years later, after a jury verdict in Federal court found appellant's (Merchants Mutual Insurance Co.) insured liable, respondent commenced an action in Supreme Court seeking by petition an order directing appellant to reimburse it for the total amount of first-party benefits it had paid. Special Term should have dismissed the proceeding. Arbitration provides the sole remedy in loss transfer between insurers and the arbitration panel is the proper forum (Insurance Law, § 674, subd 2; but see contra, Matter of Home Mut. Ins. Co. [Government Employees Ins. Co.], 67 A.D.2d 1049) for the determination of all questions of law and fact which may arise in connection with the remedy that respondent seeks.


Summaries of

Paxton Natl. Ins. Co. v. Merchants Mut. Ins. Co.

Appellate Division of the Supreme Court of New York, Fourth Department
Feb 20, 1980
74 A.D.2d 715 (N.Y. App. Div. 1980)
Case details for

Paxton Natl. Ins. Co. v. Merchants Mut. Ins. Co.

Case Details

Full title:PAXTON NATIONAL INSURANCE COMPANY, Respondent, v. MERCHANTS MUTUAL…

Court:Appellate Division of the Supreme Court of New York, Fourth Department

Date published: Feb 20, 1980

Citations

74 A.D.2d 715 (N.Y. App. Div. 1980)

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