Opinion ID: 2228477
Heading Depth: 1
Heading Rank: 2

Heading: The Mancuso/Metropolitan Claim

Text: Dominic Mancuso's claim for underinsurance benefits stems from his automobile accident involving another car, driven by Leo Charbonneau, in May 1993. At the time of the accident Mancuso had an automobile insurance policy with Metropolitan Property and Casualty Insurance Company that contained provisions for first-party (no-fault) benefits as well as underinsurance benefits. Immediately after the accident Mancuso notified Metropolitan of his claim for first-party no-fault benefits. Another clause in the insurance policy, however, required that written notice of a claim for underinsurance benefits be filed with Metropolitan [w]ithin 90 days or as soon as practicable. It did not say 90 days from when. In March 1995, Mancuso commenced a personal injury action against Charbonneau. It was not until May 30, 1996, however, that Mancuso learned of the $25,000 coverage limit of the Charbonneau policy, when Charbonneau's carrier tendered the full policy amount. Six days later he filed a notice of claim for underinsurance benefits under his own policy with Metropolitan. Metropolitan disclaimed coverage, relying on the policy's condition that notice of claims be given [w]ithin 90 days or as soon as practicable. Mancuso subsequently served Metropolitan with a demand for arbitration. Metropolitan then brought a proceeding in Supreme Court for a permanent stay of arbitration. Supreme Court construed the policy's 90 days or as soon as practicable notice condition as meaning 90 days from the date of the accident, rather than, as Mancuso urged, 90 days from when he discovered that Charbonneau was underinsured. Using the accident date criterion, the court held and the Appellate Division agreed that Mancuso did not act as soon as practicable after the lapse of 90 days following the accident, and rejected Mancuso's claim that he gave timely notice by making his claim six days after he discovered that Charbonneau was underinsured.