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Matter of Allstate Ins. Co. v. Balsamello

Appellate Division of the Supreme Court of New York, Second Department
May 28, 1996
227 A.D.2d 616 (N.Y. App. Div. 1996)

Opinion

May 28, 1996

Appeal from the Supreme Court, Richmond County (Sangiorgio, J.).


Ordered that the order and judgment is reversed, on the law, with costs, the cross petition is denied, the petition is granted, and the arbitration award is vacated.

The respondent was allegedly seriously injured in an automobile accident on February 10, 1992. The respondent's insurance policy contained a supplementary uninsured motorist provision, which provided coverage up to $100,000 per person for bodily injury. This provision provided for arbitration of disputes pertaining to the uninsured motorist provision. The arbitration was to be binding when the award did not exceed the $10,000 limit set forth in Insurance Law § 3420 (f) (2). However, in the case before us, the policy expressly provided that if the award exceeded that amount, either party had the right to seek a trial de novo, regardless of the method of arbitration.

Following an arbitration between the appellant and the respondent in September 1994 the arbitrator awarded the respondent $65,000. The appellant then commenced this proceeding, inter alia, for a trial de novo. The respondent cross-petitioned, inter alia, to confirm the arbitrator's award. The Supreme Court denied the petition and granted the cross petition. We now reverse.

The uninsured motorist provision of the appellant's policy clearly permitted both parties the opportunity to seek a trial de novo when the arbitrator's award exceeded the limits of the uninsured motorist coverage required by Insurance Law § 3420 (f) (1). The policy provision is consistent with the Insurance Law and relevant public policy, as is evidenced in part by the approval of the policy provision by the New York State Superintendent of Insurance ( see, Allstate Ins. Co. v. Jacobs, 208 A.D.2d 578).

Furthermore, the provision for a trial de novo in limited circumstances is not unconscionable. The provision in question does not benefit only the appellant. The fact that the provision happens to benefit the appellant in this particular instance is not a ground for this Court to set aside the contract provision as unconscionable ( see, Allstate Ins. Co. v. Jacobs, supra; Allstate Ins. Co. v. Purdy, 159 Misc.2d 783). Rosenblatt, J.P., Sullivan, Copertino, Santucci and Goldstein, JJ., concur.


Summaries of

Matter of Allstate Ins. Co. v. Balsamello

Appellate Division of the Supreme Court of New York, Second Department
May 28, 1996
227 A.D.2d 616 (N.Y. App. Div. 1996)
Case details for

Matter of Allstate Ins. Co. v. Balsamello

Case Details

Full title:In the Matter of ALLSTATE INSURANCE COMPANY, Appellant, v. BARBARA…

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

Date published: May 28, 1996

Citations

227 A.D.2d 616 (N.Y. App. Div. 1996)
643 N.Y.S.2d 184

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