Spears v. New York City Transit Authority

• Decision Date: 14 June 1999
• Citation: 692 N.Y.S.2d 100
• Parties: In the Matter of Diane SPEARS, et al., respondents, v. NEW YORK CITY TRANSIT AUTHORITY, appellant.
• Court: New York Supreme Court — Appellate Division

Page 100

692 N.Y.S.2d 100

In the Matter of Diane SPEARS, et al., respondents, v. NEW YORK CITY TRANSIT AUTHORITY, appellant.

Supreme Court, Appellate Division, Second Department, New York.

June 14, 1999.

Jones, Jones, Gluck & Larkin, New York, N.Y. (Anne O'Connell of counsel), for appellant.

Oliveri & Schwartz, P.C., New York, N.Y. (Paul F. Oliveri and David Seth Michaels of counsel), for respondents.

LAWRENCE J. BRACKEN, J.P., CORNELIUS J. O'BRIEN, GABRIEL M. KRAUSMAN and LEO F. McGINITY, JJ.

MEMORANDUM BY THE COURT.

In a proceeding pursuant to CPLR article 75 to confirm an uninsured motorist arbitration award, the appeal is from a judgment of the Supreme Court, Kings County (Lewis, J.), entered May 15, 1998, which is in favor of the petitioner Diane Spears and against the New York City Transit Authority in the principal sum of $150,000, and in favor of the petitioner Audrey Wilson and against the New York City Transit Authority in the principal sum of $5,000.

ORDERED that the judgment is modified, on the law, by deleting the provision in the first decretal paragraph thereof awarding the petitioner Diane Spears judgment in the principal sum $150,000, and substituting therefor a provision awarding the petitioner Diane Spears judgment in the principal sum of $10,000; as so modified, the judgment is affirmed, with costs to the petitioners.

The New York City Transit Authority (hereinafter the Transit Authority) is a self-insurer which provides uninsured motorist coverage to its passengers in accordance with Insurance Law § 3420(f)(1). The Transit Authority contends, inter alia, that the Supreme Court erred in confirming an arbitration award to the petitioner Diane Spears which exceeded the $10,000 per person statutory limit of its uninsured motorist coverage that was in effect at the time of the accident. We agree.

It is well settled that an arbitration award may be vacated upon the ground that the arbitrator exceeded his or her authority by making an award in excess of the limits fixed by the insurance policy (see, Matter of Brijmohan v. State Farm Ins. Co., 92 N.Y.2d 821, 677 N.Y.S.2d 55, 699 N.E.2d 414; Matter of Sagona v. State Farm Ins. Co., 218 A.D.2d 660, 630 N.Y.S.2d 352; Matter of Allstate Ins. Co. v. Silver, 225 A.D.2d 690, 639 N.Y.S.2d 485). In this case, the Transit Authority was obligated by Insurance Law § 3420 (former [f] ) to provide the petitioners with uninsured motorist insurance in the maximum sum of $10,000 per person and...