Matarasso v. Continental Casualty Co.

Daniel Matarasso and others (collectively, Matarasso) (plaintiffs) were injured in a car accident involving an uninsured driver. Matarasso had an automobile-insurance policy that provided coverage for uninsured drivers. Matarasso’s automobile policy also contained an arbitration clause. After Matarasso’s automobile insurer paid Matarasso the policy limit for an uninsured driver, Matarasso sought additional payment from Continental Casualty Company (Continental) (defendant), with which Matarasso had an umbrella-insurance policy that provided certain coverage to Matarasso for automobile-related damages in excess of Matarasso’s primary automobile-insurance policy limit. Matarasso’s policy with Continental did not contain an arbitration provision and did not refer to coverage for uninsured motorists. Continental declined to pay Matarasso’s claim, leading Matarasso to serve a demand for arbitration on Continental. Approximately two months later, Continental filed a motion to stay arbitration on the ground that it never agreed to arbitration with Matarasso. Matarasso responded that Continental’s motion was untimely because Civil Practice Law and Rules (CPLR) § 7503(c) required that any motion to stay arbitration due to the lack of a valid arbitration agreement or the failure to comply with a valid arbitration agreement had to be made within 20 days of service of the arbitration demand. Matarasso further argued that Continental agreed to cover uninsured-motorist damages (and to arbitrate any dispute regarding uninsured-motorist coverage) despite the absence of an arbitration clause in the Continental policy because the Insurance Law required that all automobile-insurance policies cover uninsured motorists. The supreme court granted Continental’s motion to stay arbitration. The appellate division affirmed. Matarasso appealed.