In the Matter of the Arbitration Between Knickerbocker Agency, Inc., Appellants, and Leffert Holz…

Summary

The New York Court of Appeals affirmed the Appellate Division, holding that Article XVI of the Insurance Law gives the Supreme Court exclusive jurisdiction over all claims involving an insolvent insurer, including claims by the liquidator against alleged debtors, and therefore the arbitration clause in the agency contract is unenforceable. Justice Desmond dissented, arguing that the arbitration agreement should be enforced.