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May 11, 2010

Matter of Chin v State Farm Ins. Co. (2010 NY Slip Op 04186)

https://www.beynensonlaw.com/case-law/matter-of-chin-v-state-farm-ins-co-2010-ny-slip-op-04186/

Court
Appellate Division, Second Department
Decided
May 11, 2010
Citation
2010 NY Slip Op 04186 · 73 AD3d 918
Posture
Article 75 petition
Outcome
Insurer prevailed
Issues
CPLR article 75 (arbitration awards)
Legal questions
Court review of arbitration awards (see the maps)
Cite as
Matter of Chin v State Farm Ins. Co., 73 AD3d 918 (2d Dept 2010)

Posture, outcome, issues and treatment by other decisions are Beynenson Law’s classification. Treatment labels are assigned by a language model reading the citing decision; negative and appeal-history labels are checked by a second reader.

Summary

Editorial summary by Beynenson Law, not part of the court’s decision.

The claimant failed to establish grounds for vacatur because the arbitration award had evidentiary support and was rationally based. The claimant sought review under CPLR article 75 of an award as modified by the arbitrator. The Appellate Division, Second Department, upheld denial of the petition against the insurer, explaining that CPLR 7511 (b) permits vacatur for violation of strong public policy, complete irrationality or manifest excess of a specific power limitation. Errors of law or fact alone do not warrant vacatur, and even failure to consider specified evidence would not justify setting aside this award. Because CPLR 7511 (e) requires confirmation when vacatur or modification is denied, the court modified the judgment to confirm the award and otherwise affirmed.

Reported in New York Official Reports at Matter of Chin v State Farm Ins. Co. (2010 NY Slip Op 04186)

Matter of Chin v State Farm Ins. Co.
2010 NY Slip Op 04186 [73 AD3d 918]
May 11, 2010
Appellate Division, Second Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, June 30, 2010
In the Matter of Judy Chin, Appellant,
v
State Farm Insurance Company, Respondent.

—[*1] Lawrence L. Kaye, P.C., Brooklyn, N.Y., for appellant.

Martin, Fallon & MullÉ, Huntington, N.Y. (Richard C. MullÉ of counsel), for respondent.

In a proceeding pursuant to CPLR article 75 to vacate an arbitration award dated October 29, 2008, as modified December 1, 2008, the petitioner appeals from a judgment of the Supreme Court, Suffolk County (Cohen, J.), entered July 9, 2009, which, upon a decision of the same court dated May 13, 2009, denied the petition and dismissed the proceeding.

Ordered that the judgment is modified, on the law, by adding thereto a provision pursuant to CPLR 7511 (e) confirming the award dated October 29, 2008, as modified December 1, 2008; as so modified, the judgment is affirmed, with costs payable by the petitioner.

“Consistent with the public policy in favor of arbitration, the grounds specified in CPLR 7511 for vacating or modifying a no-fault arbitration award are few in number and narrowly applied” (Matter of Mercury Cas. Co. v Healthmakers Med. Group, P.C., 67 AD3d 1017, 1017 [2009]). “An arbitration award can be vacated by a court pursuant to CPLR 7511 (b) on only three narrow grounds: if it is clearly violative of a strong public policy, if it is totally or completely irrational, or if it manifestly exceeds a specific, enumerated limitation on the arbitrator’s power” (Matter of Erin Constr. & Dev. Co., Inc. v Meltzer, 58 AD3d 729, 729 [2009]; see Matter of United Fedn. of Teachers, Local 2, AFT, AFL-CIO v Board of Educ. of City School Dist. of City of N.Y., 1 NY3d 72, 79 [2003]; Matter of Board of Educ. of Arlington Cent. School Dist. v Arlington Teachers Assn., 78 NY2d 33, 37 [1991]; Cifuentes v Rose & Thistle, Ltd., 32 AD3d 816 [2006]; Matter of Rockland County Bd. of Coop. Educ. Servs. v BOCES Staff Assn., 308 AD2d 452, 453 [2003]). “An award is irrational if there is ‘no proof whatever to justify the award’ ” (Matter of Erin Constr. & Dev. Co., Inc. v Meltzer, 58 AD3d at 730, quoting Matter of Peckerman v D & D Assoc., 165 AD2d 289, 296 [1991]). “Even if the arbitrators misapply substantive rules of law or make an error of fact, unless one of the three narrow grounds applies in the particular case, the award will not be vacated” (Matter of Erin Constr. & Dev. Co., Inc. v Meltzer, 58 AD3d at 730; see Wien & Malkin LLP v Helmsley-Spear, Inc., 6 NY3d 471 [2006]; Matter of Silverman [Benmor Coats], 61 NY2d 299, 308 [1984]; Matter of Sprinzen [Nomberg], 46 NY2d 623, 629 [1979]; Cifuentes v Rose & Thistle, Ltd., 32 AD3d at 816). “An arbitrator is not bound by principles of substantive law or rules of evidence, and may do justice and apply his or her own sense of law and equity to the facts as he or she finds them to be” (Matter of Erin Constr. & Dev. Co., Inc. v Meltzer, 58 AD3d at 730; see Matter of Silverman [Benmor Coats], [*2]61 NY2d at 308).

Here, the petitioner failed to demonstrate the existence of any of the statutory grounds for vacating the arbitrator’s award. Contrary to the petitioner’s contention, the arbitrator’s award, as modified, finds evidentiary support in the record and was rationally based (see Matter of American Express Prop. Cas. Co. v Vinci, 63 AD3d 1055, 1055 [2009]; Matter of Mangano v United States Fire Ins. Co., 55 AD3d 916, 917 [2008]). In addition, even if the arbitrator failed to consider specified evidence, vacatur of the award would not be warranted (see Matter of American Express Prop. Cas. Co. v Vinci, 63 AD3d at 1056; see also Montanez v New York City Hous. Auth., 52 AD3d 338, 339 [2008]).

Upon denying a motion to vacate or modify an arbitration award, the court must confirm the award (see CPLR 7511 [e]; Matter of Mercury Cas. Co. v Healthmakers Med. Group, P.C., 67 AD3d at 1017-1018). Thus, given this Court’s affirmance of the Supreme Court’s denial of the petition to vacate or modify the award, the award must be confirmed (see CPLR 7511 [e]). Covello, J.P., Santucci, Angiolillo and Dickerson, JJ., concur.

Legal questions

A question of no-fault law this decision rules on, from our Legal Questions pages. Bars count the decisions on the question by year and court, coloured by category; circles are this decision and the decisions on the question it cites or that cite it. Point at a bar or circle for details. The categories and summaries are Beynenson Law’s classification, made by a language model and checked by a second reading.

Court review of arbitration awards

Open the full map

When does a court vacate, modify or confirm a no-fault arbitrator’s or master arbitrator’s award under CPLR article 75?

This decision: No ground for vacatur or modification shown: the award is confirmed or left in place

Held the petitioner showed no statutory ground for vacatur because the modified award had evidentiary support and a rational basis, and any failure to consider specified evidence did not warrant vacatur, so the award was confirmed under CPLR 7511 (e).

  • Court of AppealsCt App 1
  • Appellate DivisionApp Div 34
  • Appellate TermApp Term 46
  • Trial courtsTrial 38
2010, Court of Appeals: 1 decision (1 Award stands)2022, Appellate Division: 1 decision (1 Vacated: irrational/arbitrary)2019, Appellate Division: 6 decisions (3 Award stands, 1 Vacated: irrational/arbitrary, 2 Vacated: master overstepped)2018, Appellate Division: 2 decisions (1 Award stands, 1 Vacated: irrational/arbitrary)2017, Appellate Division: 1 decision (1 Award stands)2016, Appellate Division: 1 decision (1 Award stands)2015, Appellate Division: 1 decision (1 Award stands)2013, Appellate Division: 1 decision (1 Award stands)2010, Appellate Division: 2 decisions (2 Award stands)2007, Appellate Division: 2 decisions (1 Vacated: irrational/arbitrary, 1 Vacated: exceeded power)2005, Appellate Division: 2 decisions (2 Award stands)2025, Appellate Division: 5 decisions (5 Award stands)2026, Appellate Division: 9 decisions (6 Award stands, 1 Vacated: irrational/arbitrary, 2 Vacated: exceeded power)2009, Appellate Division: 1 decision (1 Award stands)2020, Appellate Term: 2 decisions (1 Award stands, 1 Vacated: master overstepped)2019, Appellate Term: 1 decision (1 Award stands)2017, Appellate Term: 4 decisions (4 Award stands)2016, Appellate Term: 2 decisions (2 Award stands)2011, Appellate Term: 1 decision (1 Award stands)2010, Appellate Term: 3 decisions (3 Award stands)2009, Appellate Term: 1 decision (1 Award stands)2008, Appellate Term: 11 decisions (7 Award stands, 4 Vacated: irrational/arbitrary)2007, Appellate Term: 14 decisions (14 Award stands)2006, Appellate Term: 3 decisions (3 Award stands)2023, Appellate Term: 1 decision (1 Vacated: irrational/arbitrary)2024, Appellate Term: 1 decision (1 Vacated: irrational/arbitrary)2025, Appellate Term: 1 decision (1 Award stands)2004, Appellate Term: 1 decision (1 Award stands)2023, Trial courts: 13 decisions (12 Award stands, 1 Vacated: irrational/arbitrary)2019, Trial courts: 1 decision (1 Award stands)2017, Trial courts: 1 decision (1 Vacated: master overstepped)2015, Trial courts: 2 decisions (2 Award stands)2013, Trial courts: 2 decisions (2 Vacated: irrational/arbitrary)2008, Trial courts: 1 decision (1 Award stands)2006, Trial courts: 1 decision (1 Vacated: irrational/arbitrary)2005, Trial courts: 7 decisions (5 Award stands, 2 Vacated: irrational/arbitrary)2004, Trial courts: 1 decision (1 Vacated: irrational/arbitrary)2024, Trial courts: 3 decisions (3 Award stands)2026, Trial courts: 1 decision (1 Award stands)2009, Trial courts: 2 decisions (1 Award stands, 1 Vacated: irrational/arbitrary)2011, Trial courts: 1 decision (1 Award stands)2016, Trial courts: 1 decision (1 Award stands)2018, Trial courts: 1 decision (1 Vacated: exceeded power)This decision
20052010201520202025
Award standsVacated: irrational/arbitraryVacated: exceeded powerVacated: master oversteppedThis decisionCites it or cited by itCited or followed

Of the 119 decisions on this question in the Second Department courts and the Court of Appeals, 92 (this one included) are in the same category.

Cited in this decision

A label shows how this decision treated the case it cites.

  • Matter of Mercury Cas. Co. v Healthmakers Med. Group, P.C. (2009 NY Slip Op 08826) FollowedA court denying vacatur or modification of a no-fault arbitration award must confirm the award under CPLR 7511 (e).

Cited by

  • Matter of Acuhealth Acupuncture, P.C. v New York City Tr. Auth. (2018 NY Slip Op 08641)The master arbitrator's confirmation of an award denying benefits for exhausted policy limits had evidentiary support and a rational basis.

Similar decisions

  • Matter of O’Neill v GEICO Ins. Co. (2018 NY Slip Op 04328)The SUM award denying benefits for lack of accident-related causation was rational, supported by evidence, and not arbitrary or capricious.
  • State Farm Mut. Auto. Ins. Co. v Hereford Ins. Co. (2020 NY Slip Op 51304(U))An intercompany reimbursement arbitration cannot relate back to a lawsuit against a different party to toll the limitations period.
  • Matter of Travelers Indem. Co. v United Diagnostic Imaging, P.C. (2010 NY Slip Op 01658)The insurer failed to establish grounds to vacate a master arbitration award that had evidentiary support and a rational basis.
  • Matter of Allstate Ins. Co. v Westchester Med. Group, M.D. (2015 NY Slip Op 00876)The insurer failed to establish a statutory ground to vacate a master arbitrator's award confirming payment of no-fault benefits.
  • Matter of Global Liberty Ins. Co. v Professional Chiropractic Care P.C. (2015 NY Slip Op 50936(U))A rational master arbitration award is not subject to judicial vacatur for mere errors of substantive law.
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