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Matter of Aetna Cas. Sur. v. Vigilant Ins. Co.

Appellate Division of the Supreme Court of New York, Second Department
Jul 7, 1997
241 A.D.2d 451 (N.Y. App. Div. 1997)

Opinion

July 7, 1997

Appeal from the Supreme Court, Westchester County (Silverman, J.).


Ordered that the judgment is reversed, on the law, with costs, the petition is granted, the arbitration award dated July 20, 1994, is confirmed, and further arbitration of the matter is permanently stayed.

Contrary to the conclusion of the Supreme Court, the arbitrators of this insurance subrogation matter did not possess the implicit authority to vacate the arbitration award dated July 20, 1994, in favor of Aetna Casualty Surety Company (hereinafter Aetna) and direct further arbitration. Notwithstanding the claims of Vigilant Insurance Company (hereinafter Vigilant), the record does not support a finding that the arbitration award was rendered in error based upon a clerical mistake. Rather, the arbitration award was rendered after a hearing on jurisdictional matters, after which the arbitrators found that Vigilant's claim was time-barred ( see, CPLR 7502). After an arbitrator renders an award, the arbitrator is generally without power to render a new award or to modify the original award ( see, Silber v. Silber, 204 A.D.2d 527, 529). Vigilant's remedy, if any, was to move to vacate that award pursuant to CPLR 7511 (b) ( see, Matter of MVAIC v. Aetna Cas. Sur. Co., 89 N.Y.2d 214, 223-224), not to engage in ex parte communications with the arbitrators in an attempt to persuade them to vacate their own award. An arbitrator possesses limited authority to modify an award pursuant to CPLR 7509, but neither the procedural requirements thereof nor those provided by 11 NYCRR 65.10 (d) (4) (ii) were satisfied. In any event, the relief sought by Vigilant, the complete vacatur of the award, is not sanctioned by CPLR 7509. Therefore, the arbitrators were without authority to vacate the arbitration award and to direct further arbitration of Vigilant's claim.

Miller, J. P., Thompson, Joy and Luciano, JJ., concur.


Summaries of

Matter of Aetna Cas. Sur. v. Vigilant Ins. Co.

Appellate Division of the Supreme Court of New York, Second Department
Jul 7, 1997
241 A.D.2d 451 (N.Y. App. Div. 1997)
Case details for

Matter of Aetna Cas. Sur. v. Vigilant Ins. Co.

Case Details

Full title:In the Matter of AETNA CASUALTY SURETY COMPANY, Appellant, v. VIGILANT…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Jul 7, 1997

Citations

241 A.D.2d 451 (N.Y. App. Div. 1997)
660 N.Y.S.2d 58

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