Opinion

In re the Arbitration between Manhattan & Bronx Surface Transit Operating Authority & Evans

  • 117 Misc. 2d 614
  • 459 N.Y.S.2d 374
  • 1983 N.Y. Misc. LEXIS 3192
Court
New York Supreme Court
Filed
Jan 24, 1983
Status
Published
Author
Kramer
On the bench
Kramer
Cited by
4 cases
Authority
More cited than 77.2%

The opinion

OPINION OF THE COURT

Irving Kramer, J.

Upon the foregoing papers, the application of the petitioner, Manhattan and Bronx Surface Transit Operating Authority (Transit Authority), for an order staying the arbitration of an uninsured motorists claim commenced by the respondent is denied.

It is undisputed that the Transit Authority, in compliance with subdivision 1 of section 370 of the Vehicle and Traffic Law and subdivision 2-a of section 167 of the Insurance Law is required to provide uninsured motorists coverage (Matter of New York City Tr. Auth. [Thom], 70 AD2d 158 , affd 52 NY2d 1032 ). The petitioner admits that it is required to provide uninsured motorists coverage in the amount and in the form provided for in subdivision 2-a of section 167 of the Insurance Law. However, petitioner argues that it has never consented to arbitrate this claim and that it is not required to do so by statute.

The court disagrees with the petitioner. Subdivision 2-a of section 167 of the Insurance Law provided that all automobile liability insurance policies contain an uninsured motorists coverage provision, “subject to the terms *615 and conditions set forth therein to be prescribed by the board of directors of the Motor Vehicle Accident Indemnification Corporation and approved by the superintendent”.

Pursuant to such statutory direction, terms and conditions were prescribed by the board of directors of the Motor Vehicle Accident Indemnification Corporation and approved by the superintendent for inclusion in the uninsured motorists coverage indorsement of the standard automobile liability policy. One of these terms and conditions was the right to arbitrate. Without a doubt, it was the intent of the Legislature that all claimants entitled to uninsured motorists coverage be treated the same, regardless of whether they were dealing with a self-insurer or an insurer. Moreover, it is the court’s opinion that the right to arbitrate an uninsured motorists claim may be inferred from the decisions in Matter of New York City Tr. Auth. (Thom) (supra). Although in that case the issue of arbitration was not raised, Supreme Court at Special Term, Kings County, denied a stay of arbitration. The judgment was unanimously affirmed by the Appellate Division, which was then affirmed by the Court of Appeals. (See, also, New York City Tr. Auth. v Ferrier, Supreme Ct, Kings County, Index No. 10524/81, in which a stay of arbitration was denied under similar facts.)

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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