Douglas v. Government Empls. Ins. Co

In Douglas v. Government Empls. Ins. Co. (237 AD2d 246 [1997]), after GEICO disclaimed coverage for the automobile which collided with the plaintiffs' vehicle, the plaintiffs filed a claim for uninsured motorist benefits with their own insurer. The plaintiffs went to arbitration on their claim and recovered a substantial award by taking the position that insurance did not cover the other vehicle. The plaintiffs also brought an action against GEICO for a judgment declaring that the insurer had an obligation to defend and indemnify the operator of the offending vehicle in the underlying action. The Appellate Division, Second Department held that the plaintiffs, having recovered uninsured motorist benefits in the arbitration proceeding by taking the position that the offending vehicle was uninsured, were precluded by the doctrine of judicial estoppel from taking a contrary position in the action for a declaratory judgment.