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In the Matter of AMERICAN MUTUAL LIABILITY INSURANCE COMPANY, Respondent, v. ARTHUR GLADSTONE, Sued Herein as ARTHUR GOLDSTONE, Appellant.

In a proceeding to stay arbitration, the appeal is from an order of the Supreme Court, Queens County (Kassoff, J.), dated January 26, 1981, which (1) granted a stay of arbitration pending the determination of the issue of whether the offending vehicle was insured at the time of the accident and (2) directed a trial on said issue. Order reversed, on the law, with $50 costs and disbursements, the application for a stay of arbitration is denied and the parties are directed to proceed to arbitration. CPLR 7503 (subd [c]) requires that notice of an application to stay arbitration be served in the same manner as a summons, or by registered or certified mail, return receipt requested. Service by the insurer of the notice of petition to stay arbitration by ordinary mail was jurisdictionally defective (see Matter of Yak Taxi v. Teke, 41 N.Y.2d 1020). Gulotta, J.P., Cohalan, O'Connor and Bracken, JJ., concur.

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MATTER OF AM. MUT. LIAB. INS. CO. v. GLADSTONE
(Jul 6, 1981)