John Hopkins sustained serious injuries on July 23, 1989, while riding in a friend's car. The evidence showed that an unknown person took control of the car by force and caused a collision with other cars. On June 4, 1992, almost three years later, Hopkins notified Fireman's Fund that he intended to bring an uninsured motorists claim under his father's policy, since at the time of the accident the car was stolen and thus was not insured.
Fireman's sent two letters asking for more information and the reason for the long delay in making the claim. On October 5, 1992, Hopkins furnished details of the accident but no excuse for the delay. Fireman's filed an action to permanently stay arbitration of the claim since Hopkins failed to give notice of his claim "within 90 days or as soon as practicable" as required.
The lower court dismissed Fireman's petition and directed the parties to proceed to arbitration. Fireman's appealed.
The higher court decided that the company should have known that the claim was untimely upon receipt of Hopkins' first notification in June 1992. However, it sent no notice of disclaimer, and the only communication of its intent to disclaim was in February 1993 when it filed the petition to stay arbitration--nearly eight months after it was notified of the accident and almost four months after it received a complete account of the incident. Fireman's attorney testified that the claim was denied on November 11, 1992, but furnished no evidence to support his statements.
The order of the lower court ordering the parties to proceed with arbitration was affirmed.
In the Matter of Fireman's Fund Insurance Company of Newark, Appellant,
v. John Hopkins, Jr.--Court of Appeals of New York--April 30,
1996--666 North Eastern Reporter 2d 1354.