Congratulations to David Tetlak for securing dismissal of a special proceeding seeking to vacate an American Arbitration Association award.
This matter arose from an underlying uninsured/underinsured motorist arbitration following a 2021 automobile accident. Petitioner Pollack had previously settled her claim against the alleged offending driver for that driver’s $25,000 policy limit, then pursued a supplementary uninsured/underinsured motorist claim against Progressive seeking coverage under a policy with limits of $100,000 per person / $500,000 per accident.
The arbitration addressed liability, whether Pollack sustained a serious injury, and any causally related non-economic damages. The arbitrator found that Pollack violated Vehicle and Traffic Law § 1143 by attempting to make a left turn out of a driveway without yielding the right of way to the other vehicle, denying her claim in full.
Pollack then commenced a special proceeding to vacate the arbitration award, arguing that the arbitrator exceeded her power, that the award was irrational and unsupported by the evidence, that the arbitrator demonstrated bias and prejudice, and that the award was arbitrary and capricious. Progressive opposed the petition, arguing that the application was untimely, both liability and damages had been placed before the arbitrator, and there was a rational basis for the award.
The court agreed with Progressive on timeliness given Pollack received the arbitration award more than 90 days before commencing the proceeding and failed to provide a reasonable excuse for waiting more than six months to seek vacatur. The court also rejected her argument that the award had not been properly served, noting that the award was served by email in compliance with the applicable arbitration rules.
Accordingly, the court denied Pollack’s petition to vacate the AAA award and dismissed the special proceeding.
Congratulations to David on an excellent result to preserve a denial of supplementary uninsured/underinsured motorist benefits on behalf of our client.
