Matter Leatherby Insurance Company v. Douglas F. Scott Et Al. Book Reviews

Matter Leatherby Insurance Company v. Douglas F. Scott Et Al. by Supreme Court of New York Book Summary

[51 A.D.2d 519 Page 519] On December 21, 1971, an accident occurred involving a car owned by Yonk Car Service, Inc. (Yonk), upon which a liability policy had been issued by appellant, effective December 31, 1970, with a normal termination date of December 31, 1971. Claimants Scott and Johnson were passengers in the second vehicle owned by Joseph Brown and insured by Leatherby Insurance Company (Leatherby). In a suit for damages for personal injuries against Yonk the summons and other papers served upon appellant were returned to counsel for the claimants with the advice that Yonk's policy was cancelled on October 20, 1971. Claimants then sought arbitration against Leatherby. Leatherby sought a stay of arbitration on the ground that there was no proper cancellation by appellant of the policy issued to Yonk. Special Term granted a stay until the validity of appellant's disclaimer and the issue of uninsured vehicle was resolved upon a trial. At the hearing, appellant introduced documentary evidence that the Department of Motor Vehicles received a copy of the termination notice addressed to Yonk on September 30, 1971, which notice was effective October 20, 1971. It also introduced in evidence the envelope, containing the termination notice and addressed to Yonk at its last known address of record, which was postmarked September 28, 1971 and stamped by the post office and returned to appellant, indicating that Yonk had moved. No evidence to the contrary was presented at the hearing. Appellant established full compliance with the requirements of section 167-a (subd [7], par [b]) of the Insurance Law and [51 A.D.2d 519 Page 520]

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