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Ward v. Corbally, Gartland & Rappleyea

Citations: 225 A.D.2d 688; 639 N.Y.2d 460; 639 N.Y.S.2d 460; 1996 N.Y. App. Div. LEXIS 2619

Court: Appellate Division of the Supreme Court of the State of New York; March 17, 1996; New York; State Appellate Court

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The Supreme Court affirmed that the plaintiff's claim for underinsurance benefits must be settled through arbitration as stipulated in the respondent's insurance policy. The respondent did not forfeit its right to invoke the arbitration clause despite having initially denied coverage and subsequently defending that denial in court. The enforceability of the reduction-in-coverage clause, which allows for offsets in underinsurance benefits, is upheld, given that the policy includes a single-limit combined endorsement for both uninsured and underinsured motorists. The plaintiff's additional arguments were deemed unmeritorious. Justices Balletta, Thompson, Pizzuto, and Altman concurred with the decision.