79 A.D.2d 858 | N.Y. App. Div. | 1980
Order unanimously affirmed, with costs. Memorandum: Respondent, Regional Transit Service, Inc. (RTS), appeals from an order of Special Term, Monroe County, which granted the application of petitioner, State Farm Mutual Automobile Insurance Company (State Farm), to stay arbitration permanently of RTS’ claim for reimbursement from State Farm of first-party benefits paid by RTS in connection with a vehicular accident between State Farm’s insured and RTS’ insured (Insurance Law, § 674). On January 6, 1975 RTS’ insured, Minerva Harris, while in the course of her employment as an RTS bus driver, was injured in an accident with William Flood, State Farm’s insured, and she claimed no-fault benefits which were paid by RTS, the self-insurer of the risk, and its workmen’s compensation carrier. The latter filed a lien against the proceeds of any settlement in Harris’ pending third-party action (Matter of Granger v Urda, 44 NY2d 91). Harris’ subsequent settlement with State Farm was reduced by the amount of the workmen’s compensation lien. RTS later reimbursed her following the holding of the Court of Appeals in Grello v Daszykowski (44 NY2d 894) that an employee who receives both workmen’s compensation and no-fault benefits for injuries from an accident while in his employer’s vehicle may recover from the no-fault carrier any workmen’s compensation benefits