Key Takeaway
Learn about court powers to vacate arbitration awards in NY no-fault insurance cases. Key legal standards and real case analysis from Miller v Elrac.
Matter of Miller v Elrac, LLC, 2019 NY Slip Op 01544 (1st Dept. 2019)
(1) ” Since the master arbitrator found that the no-fault arbitrator reached the decision in a rational manner and that the decision was not arbitrary or capricious, incorrect as a matter of law, in excess of policy limits, or in conflict with other no-fault arbitration proceedings there were no grounds for its vacatur; the motion court correctly upheld the master arbitrator’s determination “
(2) “Contrary to petitioner’s argument, there is no basis to conclude that the arbitrator made a mistake of law by ignoring whether petitioner’s condition could have worsened after respondent’s independent medical examination; she just made a factual determination that it had not “
My only comment on this case is that the lower arbitrator made two significant mistakes. First, the arbitrator said that Petitioner should lose because of a “gap in treatment”. Besides gaps in treatment having no applicability outside Ins Law 5102(d) motions, Petitioner suffered a fracture. Second, the Petitioner developed a tumor on the finger that broke and his condition declined subsequently. The lower arbitrator looked at all records until the one where the tumor arose. The record is clear.
Anyway, arbitration can be just that: arbitrary.
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Legal Update (February 2026): Since this post’s publication in 2019, New York Insurance Law Section 5102 and related no-fault arbitration procedures may have been subject to regulatory amendments or interpretive guidance updates. Additionally, case law interpreting the standards for vacating arbitration awards in no-fault insurance disputes has continued to develop. Practitioners should verify current statutory provisions and recent appellate decisions when advising on arbitration vacatur standards.
