From Casetext: Smarter Legal Research

Elrac, Inc. v. Exum

Appellate Division of the Supreme Court of New York, First Department
May 4, 2010
73 A.D.3d 431 (N.Y. App. Div. 2010)

Opinion

May 4, 2010.

Order, Supreme Court, Bronx County (Patricia Anne Williams, J.), entered March 11, 2009, granting the petition of ELRAC, Inc., for a permanent stay of arbitration, unanimously reversed, on the law, without costs, and the petition denied.

McKinney's Insurance Law § 3420(f)(1).

Richard M. Kass, New York, for appellant. Carman, Callahan Ingham, LLP, Farmingdale (Michael F. Ingham of counsel), for respondent.

Before: Andrias, J.P., Sweeny, Renwick, Abdus-Salaam and Manzanet-Daniels, JJ.


Where respondent, operating a motor vehicle owned by petitioner, who was his employer, was in an accident with an uninsured motorist, the court erred in granting the petition to stay arbitration of his uninsured motorist claim against petitioner. Petitioner argues that since the accident occurred in the regular course of respondent's employment, the exclusivity provisions of the Workers' Compensation Law preclude respondent from arbitrating a claim against his employer, who was self-insured ( see Workers' Compensation Law § 11). Notably, although petitioner is self-insured, it is required to provide uninsured motorist benefits pursuant to Insurance Law § 3420 (f) (1) ( see Matter of Allstate Ins. Co. v Shaw, 52 NY2d 818; Matter of New York City Tr. Auth. [Thorn], 70 AD2d 158, affd 52 NY2d 1032). It follows that the right to obtain uninsured motorist protection from a self-insurer is no less than the corresponding right under a policy issued by an insurer ( see Matter of Country-Wide Ins. Co. [Manning], 96 AD2d 471, 472, affd 62 NY2d 748). Given the public policy of this State requiring insurance against injury caused by an uninsured motorist ( see Matter of State Farm Mut. Auto. Ins. Co. v Amato, 72 NY2d 288, 292), we find that a self-insured employer is required to provide mandatory uninsured motorist benefits to employees and that the Workers' Compensation Law does not preclude the employee from filing such a claim against the employer. Accordingly, the petition to stay arbitration should be denied.

Furthermore, we reject the petition as untimely, as it was filed 13 months after petitioner received respondent's notice of intention to arbitrate, long after expiration of the 20-day time limitation of CPLR 7503 (c).


Summaries of

Elrac, Inc. v. Exum

Appellate Division of the Supreme Court of New York, First Department
May 4, 2010
73 A.D.3d 431 (N.Y. App. Div. 2010)
Case details for

Elrac, Inc. v. Exum

Case Details

Full title:In the Matter of ELRAC, INC., Respondent, v BIRTIS EXUM, Appellant

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

Date published: May 4, 2010

Citations

73 A.D.3d 431 (N.Y. App. Div. 2010)
2010 N.Y. Slip Op. 3782
901 N.Y.S.2d 19

Citing Cases

Elrac, Inc. v. Exum

Elrac petitioned to stay the arbitration. Supreme Court granted the petition, but the Appellate Division…

Elrac, Inc. v. Exum

Elrac petitioned to stay the arbitration. Supreme Court granted the petition, but the Appellate Division…