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Harley v. CNA Insurance

Appellate Division of the Supreme Court of New York, Second Department
Feb 14, 1995
212 A.D.2d 614 (N.Y. App. Div. 1995)

Opinion

February 14, 1995

Appeal from the Supreme Court, Kings County (Vinik, J.).


Ordered that the order is affirmed, with costs.

The petitioner was operating a motor vehicle not owned by him when he was involved in an accident which allegedly was caused by another driver. Approximately two years after the accident, the petitioner attempted to make a claim against the insurance carrier of the offending vehicle and was informed that the $10,000/20,000 liability policy covering that vehicle had already been exhausted by claims made by others injured in the accident. Thus, the petitioner attempted to recover under the uninsured motorist endorsement of the insurance policy issued by the respondent to the owner of the vehicle that he had been operating. The respondent rejected the petitioner's claim because the offending vehicle was not an "uninsured automobile" as that term is defined in the respondent's insurance policy. The petitioner unsuccessfully sought to compel arbitration of his uninsured motorist claim, and this appeal ensued.

The uninsured motorist endorsement at issue defines an uninsured automobile, in part, as follows: "an automobile with respect to the ownership, maintenance or use of which there is, in the amounts specified in the New York Motor Vehicle Financial Security Act, neither (i) cash or securities on deposit with the New York Commissioner of Motor Vehicles nor (ii) a bodily injury liability bond or insurance policy applicable at the time of the accident with respect to any person or organization legally responsible for the use of such automobile, or with respect to which there is a bodily injury liability bond or insurance policy applicable at the time of the accident but the company writing the same disclaims liability or denies coverage thereunder". Contrary to the petitioner's contention, the insurance carrier of the offending vehicle did not deny coverage. In fact, it provided coverage to its insured, but had exhausted the limits of that coverage by the time the petitioner made his claim. Thus, as the Supreme Court concluded, the offending vehicle was not an uninsured automobile, and the petitioner was not entitled to arbitration under the uninsured motorist endorsement issued by CNA.

The fact that the application to stay the arbitration was made more than 20 days after the demand for arbitration was served (see, CPLR 7503 [c]) is immaterial as the petitioner may not claim coverage under the uninsured motorist endorsement containing an arbitration agreement when no coverage exists (see, Matter of Matarasso [Continental Cas. Co.], 56 N.Y.2d 264; Matter of Liberty Mut. Ins. Co. v. Panetta, 187 A.D.2d 719; Matter of Colonial Penn Ins. Co. v. Matthews, 169 A.D.2d 721). Bracken, J.P., Rosenblatt, O'Brien and Altman, JJ., concur.


Summaries of

Harley v. CNA Insurance

Appellate Division of the Supreme Court of New York, Second Department
Feb 14, 1995
212 A.D.2d 614 (N.Y. App. Div. 1995)
Case details for

Harley v. CNA Insurance

Case Details

Full title:In the Matter of HAROLD HARLEY, Appellant, v. CNA INSURANCE COMPANY…

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

Date published: Feb 14, 1995

Citations

212 A.D.2d 614 (N.Y. App. Div. 1995)
622 N.Y.S.2d 539

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