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MONARCH INC. v. NATIONAL INS.

652366/10, 651960/11, 102187/11

123 A.D.3d 51 (2014)

993 N.Y.S.2d 275

2014 NY Slip Op 06158

In the Matter of MONARCH CONSULTING, INC., et al., Appellants, v. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA, Respondent. In the Matter of NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA, Respondent, v. PRIORITY BUSINESS SERVICES, INC., Formerly Known as INLAND VALLEY STAFFING SERVICES, Appellant. In the Matter of NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA, Appellant, v. SOURCE ONE STAFFING, LLC, Respondent.

Appellate Division of the Supreme Court of New York, First Department.

Decided September 11, 2014.

Attorney(s) appearing for the Case

Bond, Schoeneck & King, PLLC, Syracuse ( Clifford G. Tsan of counsel), and Roxborough, Pomerance, Nye & Adreani, LLP, Woodland Hills, CA ( Nicholas P. Roxborough of the bar of the State of California, admitted pro hac vice, of counsel), for Monarch Consulting, Inc. and others, appellants.

Anderson Kill & Olick, P.C., New York City ( Jeffrey E. Glen and Edward J. Stein of counsel), for Priority Business Services, Inc., appellant.

Sidley Austin LLP, New York City ( Nicholas P. Crowell , Andrew W. Stern and Gazeena K. Soni of counsel), for National Union Fire Insurance Company of Pittsburgh, PA., appellant/ respondent.

Anderson Kill & Olick, P.C., New York City ( Rene F. Hertzog of counsel), for Source One Staffing, LLC, respondent.

TOM, J.P. and SWEENY, J., concur with MOSKOWITZ, J.; MANZANET-DANIELS and GISCHE, JJ., dissent in a separate opinion by GISCHE, J.

OPINION OF THE COURT

MOSKOWITZ, J.

In this appeal, we are called on to decide whether three insureds are compelled to arbitrate their disputes with their workers' compensation insurance carrier even though the carrier failed to file the arbitration agreements, contained in side agreements to the insurance policies, with the California Department of Insurance as California law requires.

We find that, in light of the strong policy under California...

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