Key Takeaway
NY Court rules 20-day deadline for challenging arbitration is absolute - Ameriprise loses case for failing to timely object to no-fault insurance arbitration notice.
Matter of Ameriprise Ins. Co. v Sandy 2018 NY Slip Op 00828 (2d Dept. 2018)
“Where an insurance policy contains an agreement to arbitrate, CPLR 7503 (c) requires a party, once served with a , to move to stay such arbitration within 20 days of service of such , else he or she is precluded from objecting’” (Matter of Government Empls. Ins. Co. v Castillo-Gomez, 34 AD3d 477, 478, quoting Matter of Steck , 89 NY2d 1082, 1084). Here, the proceeding was not commenced within 20 days of the receipt of the November 2, 2015, notice of intention to arbitrate.
In order for the 20-day limitation period to be enforceable, the notice of intention to arbitrate must comply with the requirements of CPLR 7503(c) (see Government Empls. Ins. Co. v Castillo-Gomez, 34 AD3d at 478; Matter of Nassau Ins. Co. , 100 AD2d 969, 970; State Farm Mut. Auto. Ins. Co. v Szwec, 36 AD2d 863, 863). Here, contrary to Ameriprise’s contention, the November 2, 2015, notice complied with all the statutory requirements.
Ameriprise failed to establish that the November 2, 2015, notice of intention to arbitrate was deceptive and intended to prevent it from timely contesting the issue of arbitrability ”
I think Ameriprise wants the legal fees the expended back.
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