Travelers Insurance v. Lombardo

Order unanimously reversed, without costs and motion for stay of arbitration granted pending trial, and matter remitted for trial of the issue of the existence of a “ hit and run ” vehicle. Memorandum: When insured persons duly demand arbitration of their claims the insurer can obtain a stay of the' demand only upon tendering an issue which the court must determine prior to arbitration. Although such an issue cannot be presented by mere conelusory allegations by the insurer (Matter of Fuscaldo [MVAIC], 24 A D 2d 744), the allegations in support of petitioner-appellant’s motion to stay…