Izzo v. Allstate Insurance
Court: Appellate Division of the Supreme Court of the State of New York; June 3, 1996; New York; State Appellate Court
The petitioner sustained injuries in a motor vehicle accident and sought underinsured motorist benefits from Allstate Insurance Company. Following arbitration with the American Arbitration Association, the petitioner received an award of $60,000. The insurance policy permitted both parties to request a trial de novo if the arbitration award exceeded specified limits, as stipulated in Insurance Law §3420(f)(2). This trial de novo provision is recognized as valid and enforceable under precedent. The Supreme Court correctly vacated the arbitration award and granted Allstate a trial de novo. The petitioner’s claims on appeal, alleging procedural errors in the arbitration process, were dismissed; the arbitration adhered to the policy's terms. Consequently, Allstate did not waive its entitlement to a trial de novo. The decision was affirmed with concurrence from judges Ritter, Pizzuto, Santucci, and Krausman.