Geico General Insurance v. Sherman

307 A.D.2d 967, 763 N.Y.S.2d 649
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 11, 2003
StatusPublished
Cited by6 cases

This text of 307 A.D.2d 967 (Geico General Insurance v. Sherman) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Geico General Insurance v. Sherman, 307 A.D.2d 967, 763 N.Y.S.2d 649 (N.Y. Ct. App. 2003).

Opinion

In a proceeding pursuant to CPLR article 75 to confirm an arbitration award, in which Claire B. Sherman and Lowell B. Sherman cross-petitioned to vacate the award, the appeal is from a judgment of the Supreme Court, Nassau County (McCarty, J.), entered June 12, 2001, which, upon an order of the same court dated April 30, 2001, granted the petition and denied the cross petition.

Ordered that the notice of appeal from the order dated April 30, 2001, is deemed a premature notice of appeal from the judgment (see CPLR 5520 [b]); and it is further,

Ordered that the judgment is affirmed; and it is further,

Ordered that one bill of costs is awarded to the petitioner.

The appellant Claire B. Sherman (hereinafter Sherman) allegedly sustained personal injuries in a two-vehicle collision with nonparty Akeem Abdullah. The collision occurred when Sherman made a left-hand turn at a traffic light, and her vehicle struck the driver’s side of Abdullah’s vehicle near the rear wheel. Thereafter, Sherman brought a personal injury action against Abdullah and was ultimately awarded a default judgment against him. Following that action, Sherman filed a claim for underinsured motorist benefits with her insurer, the petitioner, GEICO General Insurance Company (hereinafter GEICO). When GEICO denied her claim for such benefits, Sherman and her husband demanded arbitration of the claim. One day prior to the scheduled arbitration hearing, the appellants’ counsel received a letter from GEICO indicating that Abdullah and his mother, Hope Williams, would be testifying at [968]*968the hearing. Over Sherman’s objection, the arbitrator allowed Abdullah and Williams to testify. Following the arbitration hearing, the arbitrator denied Sherman’s claim for underinsured motorist benefits, finding that her own negligence had caused the accident.

GEICO subsequently commenced the instant proceeding pursuant to CPLR article 75 to confirm the arbitrator’s award. The appellants filed a cross petition to vacate the award on the ground that the arbitrator committed misconduct and exceeded his authority in considering the issue of fault and in allowing Abdullah and Williams to testify at the arbitration hearing. With respect to the latter issue, the appellants argued that GEICO had not given them timely notice, as required by the rules of the American Arbitration Association, that those witnesses would be testifying. The Supreme Court granted GEICO’s petition and denied the appellants’ cross petition. We affirm.

The Supreme Court properly confirmed the arbitration award in favor of GEICO and denied the appellants’ cross petition to vacate the award. It is well settled that where “a party who has participated in arbitration seeks to vacate the award, vacatur may only be granted upon the grounds that The rights of that party were prejudiced by corruption, fraud or misconduct in procuring the award, partiality of an arbitrator, that the arbitrator exceeded his power or failed to make a final and definite award, or a procedural failure that was not waived’ ” (Matter of Mohiuddin v Khan, 197 AD2d 578 [1993], quoting Matter of Silverman [Benmor Coats], 61 NY2d 299, 307 [1984]; see CPLR 7511 [b] [1]). Contrary to the appellants’ contention, the arbitrator neither committed misconduct (see CPLR 7511 [b] [1] [i]) nor exceeded his authority (see CPLR 7511 [b] [1] [iii]) when he considered the issue of liability in determining whether the appellants were entitled to underinsured motorist benefits under their policy with GEICO (see Matter of Board of Educ. of Dover Union Free School Dist. v Dover-Wingdale Teachers’ Assn., 61 NY2d 913, 915 [1984]; see also Roggio v Nationwide Mut. Ins. Co., 66 NY2d 260, 263 [1985]).

Similarly, the arbitrator did not exceed his authority or commit misconduct in allowing GEICO to call Abdullah and Williams as witnesses, despite GEICO’s failure to provide the appellants with the notice required by the rules of the American Arbitration Association (see Matter of Janis v New York State Div. of Hous. & Community Renewal, 271 AD2d 878, 879 [2000] [the failure to comply with a procedural provision of an arbitration agreement does not constitute a ground for vacating an [969]*969award under CPLR 7511]). Although it may have been better if the arbitrator had not allowed Abdullah and Williams to testify at the hearing (cf. Matter of Insurance Co. of N. Am. v St. Paul Fire & Mar. Ins. Co., 215 AD2d 386, 387 [1995] [“The failure of an arbitrator to grant an adjournment is an abuse of discretion constituting misconduct within the meaning of CPLR 7511 (b) (1) (i) if it results in the foreclosure of the presentation of pertinent and material evidence”]), the appellants failed to prove by clear and convincing evidence (see Matter of Janis v New York State Div. of Hous. & Community Renewal, supra at 879; Matter of Thompson [S.L.T. Ready-Mix, Div. of Torrington Indus.], 245 AD2d 911, 913 [1997]; Matter of Cox [Mitchell], 188 AD2d 915, 917 [1992]) that doing so constituted misconduct within the meaning of CPLR 7511 (b) (1) (i). Rather, any error in admitting this testimony was harmless and did not prejudice the appellants (see Matter of Wiener Furniture Co. [Kingston City Schools Consol.], 90 AD2d 875 [1982]; Matter of Murray Walter, Inc. [Laborers Intl. Union of N. Am., Local No. 7], 54 AD2d 1055, 1056-1057 [1976]), since it is clear that the arbitrator based his decision on Sherman’s testimony, not that of Abdullah or Williams (see Matter of Janis v New York State Div. of Hous. & Community Renewal, supra).

The dissent’s conclusion that the testimony of Abdullah and Williams “apparently” factored in the arbitrator’s determination is not supported by the record and is, in fact, contradicted by it. In his decision, the arbitrator found “that [Sherman] admitted negligence in not observing the other vehicle prior to turning left into oncoming traffic,” and that there was “no evidence that [Abdullah] was negligent in the use or operation of his vehicle.” He noted that the impact was to the left rear portion of Abdullah’s vehicle and the front of Sherman’s vehicle. He also rejected as speculation the argument that Abdullah was speeding, noting that counsel’s reference to Sherman’s testimony at her examination before trial “does not reflect the circumstances as [the appellant] wishes them to be.”

The appellants’ remaining contentions are without merit. S. Miller, J.P., Friedmann and Rivera, JJ., concur.

Crane, J., dissents and votes to reverse the judgment, vacate the order, deny the petition, grant the cross petition, and remit the matter to the American Arbitration Association for a new determination by a different arbitrator, with the following memorandum; The appellant Claire B. Sherman was allegedly injured in a motor vehicle accident when her car collided with a motor vehicle driven by Ahkeem S. Abdullah. She and her husband, suing derivatively, commenced an action against [970]*970Abdullah in the Supreme Court, Kings County. Abdullah defaulted and a judgment was entered against him on March 16, 2000.

After the appellants obtained their default judgment, they filed a demand for Supplementary Uninsured/Underinsured Motorists (hereinafter SUM) Arbitration pursuant to the American Arbitration Association (hereinafter the AAA) Rules for Arbitration of Supplementary Uninsured/Underinsured Motorist Insurance Disputes and Uninsured Motorist Insurance Disputes in the State of New York on the issue of damages only.

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Cite This Page — Counsel Stack

Bluebook (online)
307 A.D.2d 967, 763 N.Y.S.2d 649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geico-general-insurance-v-sherman-nyappdiv-2003.