Matter of Arbitration Between State Farm Mut. Auto. Ins. [Jackson]

Notice of Claim – No Excuse for Delay in Notification and No Showing of Due Diligence

The Appellate Division, Third Department held in this decision that Supreme Court had erred in failing to grant the petitioner insurer’s petitioner for a stay of arbitration in the insurer’s motion for reconsideration because new evidence demonstrated that the respondent insured had learned approximately one month after the accident that she was permanently disabled. The Third Department stated the rule that a delay of more than one year in providing such notice is unreasonable as a matter of law; however there may be circumstances that will excuse or explain a delay, citing Murphy v. New York Cent. Mut. Fire Ins. Co. The new evidence also demonstrated that the insured had gone through physical therapy for several months after the accident. The Third Department held that the insured (1) failed to proffer a reasonable excuse for the delay in notifying the insurer of her intent to seek a SUM claim and (2) did not demonstrate she exercised due diligence in making a SUM claim.