May 31, 2016

Matter of Global Liberty Ins. Co. v Professional Chiropractic Care, P.C. (2016 NY Slip Op 04156)

Headnote

The relevant facts of the case were that a master arbitrator's award was given to the respondent, Professional Chiropractic Care, P.C., after their assignor failed to attend scheduled independent medical exams. The main issue decided on was whether the no-fault policy issued by the petitioner was void due to the assignor's actions, and the alleged error in the petitioner's denial of the claim form. The court reversed the order of Supreme Court, Bronx County that denied the petition to vacate the master arbitrator's award, and granted the petition, vacating the award. The holding of the case was that the master arbitrator's award was arbitrary because it irrationally ignored the law, which the insurer had presented, that the no-fault policy was void ab initio due to the assignor's actions. The alleged error in petitioner's denial of claim form was not considered a sufficient or rational basis for the award.

Reported in New York Official Reports at Matter of Global Liberty Ins. Co. v Professional Chiropractic Care, P.C. (2016 NY Slip Op 04156)

Matter of Global Liberty Ins. Co. v Professional Chiropractic Care, P.C. (2016 NY Slip Op 04156)
Matter of Global Liberty Ins. Co. v Professional Chiropractic Care, P.C.
2016 NY Slip Op 04156 [139 AD3d 645]
May 31, 2016
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, June 29, 2016

[*1]

 In the Matter of Global Liberty Insurance Co., Appellant,
v
Professional Chiropractic Care, P.C., Respondent.

The Law Office of Jason Tenenbaum, P.C., Garden City (Jason Tenenbaum of counsel), for appellant.

The Law Office of Sukhibir Singh, Richmond Hill (Ralph C. Caio of counsel), for respondent.

Order, Supreme Court, Bronx County (Kenneth L. Thompson, Jr., J.), entered July 10, 2015, which denied the petition to vacate a master arbitrator’s award, unanimously reversed, on the law, without costs, the petition granted, and the award vacated. The Clerk is directed to enter judgment accordingly.

The master arbitrator’s award was arbitrary because it irrationally ignored the law, which petitioner insurer had presented to the master arbitrator, that the no-fault policy issued by petitioner was void ab initio due to respondent’s assignor’s failure to attend duly scheduled independent medical exams (see American Tr. Ins. Co. v Lucas, 111 AD3d 423, 424 [1st Dept 2013]). The alleged error in petitioner’s denial of claim form is of “no moment” (Unitrin Advantage Ins. Co. v Bayshore Physical Therapy, PLLC, 82 AD3d 559, 560 [1st Dept 2011], lv denied 17 NY3d 705 [2011]), and was not a sufficient or rational basis for the award (see Auto One Ins. Co. v Hillside Chiropractic, P.C., 126 AD3d 423, 424 [1st Dept 2015], citing Matter of Petrofsky [Allstate Ins. Co.], 54 NY2d 207, 211 [1981]).

Respondent waived its objections regarding improper service of the petition, since it never moved to dismiss the petition on those grounds (see CPLR 3211 [e]; B.N. Realty Assoc. v Lichtenstein, 21 AD3d 793, 796 [1st Dept 2005]; Matter of Resnick v Town of Canaan, 38 AD3d 949, 951 [3d Dept 2007]). Concur—Friedman, J.P., Renwick, Moskowitz, Richter and Kapnick, JJ. [Prior Case History: 48 Misc 3d 1202(A), 2015 NY Slip Op 50936(U).]