Nasca v. Royal Globe Insurance
Claimant Nasca, injured in an automobile accident with a noncovered person, received workers' compensation benefits from February to December 1980. He then sought recovery under the uninsured motorists provision of his insurance contract with Royal Globe, which rejected his claim. Royal Globe attempted to stay arbitration, arguing Nasca had not sustained a "serious injury" and that the company was entitled to a setoff for workers' compensation benefits. Special Term rejected this application. The court affirmed, holding that a "serious injury" need not be shown for recovery under an uninsured motorists provision, citing Matter of Dean v Nationwide Mut. Ins. Co. The court also found no statutory basis for reducing the recovery by workers' compensation payments, stating that any contractual right to a setoff is an issue for the arbitrator, not a ground to deny arbitration.