Legal Question in Insurance Law in New York

Car Warranty Claim

I bought a used car last year and also purchased a warranty that covers various engine components, drivetran, transmission, etc. Well sadly, my transmission recently died and I brought it to a local transmission shop. The shop started a claim. The insurance agreed to pay out only 41% of the total of the bill. I was stuck with the only half. I filed the paperwork to contest the claim with the insurance company and my claim was denied. Their payout still stands and they don�t feel they owe me anything extra.

I wish to bring action in small claims court for breach of contract against the insurance company, however I am not sure how to do so or even if I can. The problem being I live in NYC and the company is a Pennsylvania corporation. I have tried to call the clerk�s office but they seem unwilling to speak with the common people and keep you on hold all day. I need some guidance. Thank you.


Asked on 6/30/08, 2:50 pm

1 Answer from Attorneys
Kevin Connolly Kevin J. Connolly

Re: Car Warranty Claim

They stole your money in New York. That's grounds enough to invoke "long arm" jurisdiction. But Small Claims Court does not have long arm jurisdiction. Long arm jurisdiction requires filing in Supreme Court unless you can show the company has a real presence in New York. And Supreme Court is not generous in dealing with pro se plaintiffs.

If the used car dealer sold you the policy, you can sue the dealer. Alternatively, if you can find out that the insurance company has screwed lots of New Yorkers, we could have a viable class action. And when I say "we," I really mean We, if you can do the legwork to show that there is a class of potential claimants.

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Answered on 6/30/08, 3:01 pm


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