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Matter of Brijmohan v. State Farm Insurance Company

Court of Appeals of the State of New York
Jun 4, 1998
92 N.Y.2d 821 (N.Y. 1998)

Summary

holding that arbitrator exceeded powers by awarding damages more than that of applicable insurance policy limits when the arbitration clause of the insurance contract incorporated by reference the American Arbitration Association rules, which provides that arbitrators "shall render a decision . . . not in excess of the applicable policy limits."

Summary of this case from Tatibouet v. Ellsworth

Opinion


92 N.Y.2d 821 699 N.E.2d 414, 677 N.Y.S.2d 55 In the Matter of Kamie BRIJMOHAN, Appellant, v. STATE FARM INSURANCE COMPANY, Respondent. 1998-05172 New York Court of Appeals June 4, 1998.

Harold Chetrick, New York City, for appellant.

[677 N.Y.S.2d 56] Martin, Fallon & Mulle, Huntington (Richard C. Mulle, of counsel), for respondent.

OPINION OF THE COURT

MEMORANDUM.

The order of the Appellate Division should be affirmed, with costs.

The order directing the parties to arbitrate in this case noted that there was a dispute as to the amount of coverage provided by the uninsured motorist policy under which appellant sought payment. The court concluded that at arbitration the "policy speaks for itself." During arbitration, however, respondent State Farm Insurance failed to controvert appellant's statement that the coverage in question was $100,000, and the declarations page reflecting a lower coverage limit was apparently never introduced before the arbitrator. The arbitrator awarded $75,000 to appellant, who then brought this proceeding to confirm the award. Respondent objected at confirmation that the policy only covered losses up to $10,000.

A limitation on the arbitrator's power "will not be waived if the party relying on it asserts it at Special Term in opposition to an application for confirmation" (Matter of Silverman [Benmor Coats], 61 N.Y.2d 299, 309, 473 N.Y.S.2d 774, 461 N.E.2d 1261; see, CPLR 7511[b][1][iii] ). Here the arbitration clause of the policy incorporated by reference the rules of the American Arbitration Association, which in turn provided that the arbitrator "shall render a decision * * not in excess of the applicable policy limits." The declarations page produced at the confirmation proceeding demonstrates that the arbitrator's award was beyond the policy limits and therefore in excess of the arbitrator's powers (see, Matter of Silverman [Benmor Coats], supra).

KAYE, C.J., and TITONE, BELLACOSA, SMITH, LEVINE, CIPARICK and WESLEY, JJ., concur.

Order affirmed, with costs, in a memorandum.


Summaries of

Matter of Brijmohan v. State Farm Insurance Company

Court of Appeals of the State of New York
Jun 4, 1998
92 N.Y.2d 821 (N.Y. 1998)

holding that arbitrator exceeded powers by awarding damages more than that of applicable insurance policy limits when the arbitration clause of the insurance contract incorporated by reference the American Arbitration Association rules, which provides that arbitrators "shall render a decision . . . not in excess of the applicable policy limits."

Summary of this case from Tatibouet v. Ellsworth

In Brijmohan, the insurer failed to correct claimant's statement during the arbitration that the coverage in question was $100,000, when in fact the policy only covered losses up to $ 10,000.

Summary of this case from Country-Wide Ins. Co. v. Protechmed Inc.

In Brijmohan v State Farm Insurance (92 NY2d 821 [1998]), the insurer failed to correct claimant's statement during the arbitration that the coverage in question was $100,000, when in fact the policy only covered losses up to $10,000.

Summary of this case from Country-Wide Ins. Co. v. LDU Therapy Inc.
Case details for

Matter of Brijmohan v. State Farm Insurance Company

Case Details

Full title:In the MATTER OF KAMIE BRIJMOHAN, Appellant, v. STATE FARM INSURANCE…

Court:Court of Appeals of the State of New York

Date published: Jun 4, 1998

Citations

92 N.Y.2d 821 (N.Y. 1998)
677 N.Y.S.2d 55
699 N.E.2d 414

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