Allstate Insurance v. Palermo

In a proceeding pursuant to CPLR article 75 to permanently stay arbitration of a claim for underinsured motorist benefits, the insured appeals from an order of the Supreme Court, Nassau County (McCaffrey, J.), dated December 7,1994, which granted the application.

Ordered that the order is affirmed, with costs.

The appellant, who was insured by the petitioner, was involved in an automobile accident with another vehicle. The appellant settled with the liability insurance carrier of the driver of the other vehicle without the permission of the petitioner, and thus forfeited his eligibility for…