In re Arbitration between Allstate Insurance & Schelter

—Order unanimously reversed on the law without costs and petition granted. Memorandum: Supreme Court erred in denying the petition seeking a permanent stay of arbitration. Paul Schelter (respondent) was injured in a motor vehicle accident in February 1992, and in January 1994 respondents settled their action against the driver of the other vehicle involved in the accident for the policy limit of $10,000. At that time, petitioner and respondents commenced negotiations to settle respondents’ claim for supplemental underinsured motorist (SUM) benefits. Negotiations continued until October 1999,…