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IN RE: EMPLOYERS INSURANCE COMPANY OF WAUSAU, Petitioner–Appellant, v. DOMINION INSURANCE RECEIVABLE LLC, Respondent–Respondent.
Order, Supreme Court, New York County (Margaret Chan, J.), entered on or about June 21, 2023, which denied the petition seeking a stay of an arbitration initiated by respondent, a declaration that the arbitration was governed by an assignment agreement subjecting the dispute to the exclusive jurisdiction of Supreme Court, a declaration finding the respondent is not entitled to assert a recoverables claim against petitioner, and a declaration that the claim for recoverables is barred by the statute of limitations, and granted respondent's cross-motion to compel the arbitration, unanimously affirmed, with costs.
The court properly concluded that petitioner participated in the subject arbitration and is therefore precluded from seeking a stay pursuant to CPLR 7503(b) (see Matter of ROM Reins. Mgt. Co., Inc. v. Continental Ins. Co., Inc., 128 A.D.3d 570, 570, 8 N.Y.S.3d 569 [1st Dept. 2015]; Matter of North River Ins. Co. [Morgan], 291 A.D.2d 230, 233, 737 N.Y.S.2d 355 [1st Dept. 2002]). We note that in addition to selecting an arbitrator, petitioner also engaged in other conduct manifesting a preference inconsistent with its subsequent effort to stay arbitration, including, among other things, negotiating an agreement governing some of the arbitration procedures and representing to respondent that the arbitrators could proceed to selecting an umpire if the parties' attempts at resolution were unsuccessful. The merits of petitioner's arguments, including the timeliness of respondent's claim and petitioner's contention that respondent lacks standing since no claims against petitioner were assigned to it, are matters which may be addressed in the arbitration proceeding (see CPLR 7501; Matter of Board of Educ. of Watertown City School Dist. [Watertown Educ. Assn.], 93 N.Y.2d 132, 142, 688 N.Y.S.2d 463, 710 N.E.2d 1064 [1999]; Matter of ROM Reins. Mgt. Co. at 570, 8 N.Y.S.3d 569).
We have considered petitioner's remaining arguments and find them unavailing.
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Docket No: 2878
Decided: October 24, 2024
Court: Supreme Court, Appellate Division, First Department, New York.
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FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
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