SUPREME COURT OF THE STATE OF NEW YORK

Appellate Division, Fourth Judicial Department

790 

CA 15-02099 

PRESENT: CENTRA, J.P., PERADOTTO, LINDLEY, CURRAN, AND TROUTMAN, JJ. 

 

IN THE MATTER OF ARBITRATION BETWEEN ALLSTATE 

INSURANCE COMPANY, PETITIONER-RESPONDENT, 

AND MEMORANDUM AND ORDER

MICHAEL J. CAPPADONIA, RESPONDENT-APPELLANT. 

FINKELSTEIN & PARTNERS, LLP, NEWBURGH (GEORGE A. KOHL, II, OF

COUNSEL), FOR RESPONDENT-APPELLANT. 

LAW OFFICE OF JOHN TROP, DEWITT (BARNEY F. BILELLO OF COUNSEL), FOR

PETITIONER-RESPONDENT. 

 

Appeal from an order of the Supreme Court, Oneida County (Erin P.

Gall, J.), entered June 23, 2015. The order granted the petition to

permanently stay arbitration. 

It is hereby ORDERED that the order so appealed from is

unanimously reversed on the law without costs and the petition is

dismissed. 

Memorandum: In this dispute over supplementary

uninsured/underinsured motorist (SUM) coverage, respondent insured

appeals from an order granting the petition of petitioner insurer to

stay arbitration permanently pursuant to CPLR 7503 (c). We agree with

respondent that Supreme Court erred in granting the petition. 

Respondent obtained an automobile liability insurance policy from

petitioner for a pickup truck and two passenger vehicles. The policy

provided SUM coverage to respondent, and also included an arbitration

clause. While the policy was in effect, respondent sustained personal

injuries when a motorcycle he was operating was struck by an allegedly

underinsured vehicle. Although the motorcycle was not covered under

the policy issued to him by petitioner, respondent made a claim with

petitioner for SUM coverage. Petitioner disclaimed coverage on the

ground that the motorcycle was not covered under the policy, prompting

respondent to demand arbitration pursuant to CPLR 7503 (c). More than

five months after respondent’s demand, petitioner commenced this

proceeding to stay arbitration, asserting, as it did in the disclaimer

letter, that no SUM coverage existed in connection with the accident

because the motorcycle on which petitioner was riding was not a

covered vehicle under the policy. In opposition, respondent argued,

inter alia, that the petition was untimely. The court granted the

petition without explanation, and we now reverse. 
-2- 790 

CA 15-02099 

We agree with respondent that the petition to stay arbitration is

time-barred because it was not filed within 20 days of respondent’s

formal arbitration demand (see CPLR 7503 [c]; Aetna Life & Cas. Co. v

Stekardis, 34 NY2d 182, 185-186; John W. Cowper Co. v Clintstone

Props., 120 AD2d 976, 977, lv denied 68 NY2d 610). Although the 20-

day time limit of CPLR 7503 (c) does not apply if the parties never

had “any agreement to arbitrate” (Matter of Matarasso [Continental

Cas. Co.], 56 NY2d 264, 268), the “Matarasso exception is

inapplicable” because “the contract[] at issue in this case contain[s]

an arbitration provision” (Matter of Fiveco, Inc. v Haber, 11 NY3d

140, 145, rearg denied 11 NY3d 801; see Matter of Steck [State Farm

Ins. Co.], 89 NY2d 1082, 1084). Indeed, so long as the subject

insurance policy contains some type of arbitration agreement between

the parties, as it does here, an untimely stay application which

“conten[ds] that there is no coverage under [the] policy’s [SUM]

provisions . . . is outside the [Matarasso] exception” (Matter of Nova

Cas. Co. v Martin, 57 AD3d 548, 549; see Steck, 89 NY2d at 1084;

Matter of State Farm Mut. Auto. Ins. Co. v Urban, 78 AD3d 1064,

1065-1066; State Farm Ins. Cos. v DeSarbo, 52 AD3d 936, 937). Because

the petition was untimely, the court had no power to entertain it (see

Fiveco, Inc., 11 NY3d at 145; Steck, 89 NY2d at 1084; Aetna Life &

Cas. Co., 34 NY2d at 185-186). 

In light of our determination, we need not address respondent’s

remaining contentions. 

Entered: October 7, 2016 Frances E. Cafarell

Clerk of the Court