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Great American Insurance v. Garcia

Citations: 250 A.D.2d 850; 673 N.Y.S.2d 710; 1998 N.Y. App. Div. LEXIS 6033

Court: Appellate Division of the Supreme Court of the State of New York; May 26, 1998; New York; State Appellate Court

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Jose Garcia appeals a portion of a Supreme Court order from Nassau County, which stayed arbitration related to a hit-and-run accident pending a hearing to determine his involvement. The court ruled that if the hearing favored Garcia, arbitration would proceed before a three-member panel as specified in his insurance policy. The appellate court affirmed the order, rejecting Garcia's claim that arbitration must occur before the American Arbitration Association. Instead, it emphasized that the insurance policy outlined a specific arbitration process requiring each party to select an arbitrator, who would then choose a third, aligning with precedents such as *Matter of State Mut. Auto. Ins. Co. v. Mercado* and others. The court clarified that New York State law does not require arbitration to be conducted by the American Arbitration Association. The decision was unanimous among the justices.