In re the Arbitration between Empire Mutual Insurance & Stroud

Memorandum. We agree with the Appellate Division that Boston Old Colony Insurance Company, the alleged tort-feasors’ insurance company, was not justified in disclaiming liability because of non-co-operation of its insureds. There is a threshold question. Although a contrary rule obtains elsewhere and in other arbitrational settings we would be disposed to hold otherwise, we nonetheless conclude that under our decisions in Matter of MVAIC (Malone) (16 NY2d 1027), and Matter of Rosenbaum (American Sur. Co. of N. Y.) (11 NY2d 310), the issue as to whether the alleged tort-feasors were insured…