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A state court in New York refused to stay arbitration proceeding despite the requesting party's argument that the initial demand for arbitration had been mailed to the wrong office.
In In re State Farm Ins. Co. (DeSarbo), 2007 N.Y. Slip Op. 00439, 2007 WL 174471 (N.Y. App. Div. Jan. 25, 2007), DeSarbo sought underinsurance benefits from his insurance company, State Farm, and sent a demand for arbitration to a local State Farm office.
Forty-five days passed before State Farm requested a stay of arbitration. The trial court granted the stay, despite a New York law requiring such applications be made within 20 days of receiving the demand for arbitration. N.Y. C.P.L.R. §7503(c).
The Court reversed, finding the application to stay arbitration untimely. State Farm offered no compelling explanation as to how receiving the demand for arbitration in the local office caused it to be "so misled that it was unable to seek a stay for a month and a half."
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