December 7, 2022

Matter of Wesco Ins. Co. v Government Empls. Ins. Co. (2022 NY Slip Op 06936)

Headnote

The main facts of the case involved a motor vehicle collision in which the injured party was seeking payment of no-fault benefits from the insurer of the loaner vehicle involved in the accident. The insurer, Wesco Insurance Company, was held liable for the benefits paid to the injured party in a compulsory arbitration proceeding. Wesco then sought to vacate the arbitration award, but the Supreme Court denied the petition, affirming the arbitrator's decision. The main issue decided was whether Wesco Insurance Company was liable for the no-fault benefits paid to the injured party under the circumstances of the collision involving the loaner vehicle. The court held that Wesco was indeed liable for the benefits, affirming the decision of the arbitration award. The holding of the case was that the Supreme Court properly denied the petition to vacate the arbitration award and dismissed the proceeding, upholding the decision that Wesco Insurance Company was liable for the benefits paid to the injured party.

Reported in New York Official Reports at Matter of Wesco Ins. Co. v Government Empls. Ins. Co. (2022 NY Slip Op 06936)

Matter of Wesco Ins. Co. v Government Empls. Ins. Co.

2022 NY Slip Op 06936 [211 AD3d 742]

December 7, 2022

Appellate Division, Second Department

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

As corrected through Wednesday, February 8, 2023

[*1]

In the Matter of Wesco Insurance Company, Appellant,
v
Government Employees Insurance Company, Respondent.

McDonnell Adels & Klestzick, PLLC, Garden City, NY (Jannine A. Gardineer of counsel), for appellant.

Harriette G. Zelman (Scahill Law Group, P.C., Bethpage, NY [David J. Tetlak], of counsel), for respondent.

In a proceeding pursuant to CPLR article 75 to vacate an arbitration award dated May 23, 2019, the petitioner appeals from an order of the Supreme Court, Nassau County (Roy S. Mahon, J.), entered May 7, 2020. The order denied the petition and, in effect, dismissed the proceeding.

Ordered that the order is affirmed, with costs.

In May 2017, nonparty Eric Rhodes was injured when he was involved in a motor vehicle collision while operating a loaner vehicle owned by nonparty Staluppi Group of Dealerships and insured by Wesco Insurance Company (hereinafter Wesco). Government Employees Insurance Company (hereinafter GEICO) paid no-fault benefits to Rhodes for his injuries pursuant to an automobile liability policy issued to him. GEICO thereafter sought to recover the benefits paid to Rhodes from Wesco in a compulsory arbitration proceeding. In an arbitration award dated May 23, 2019, the arbitrator determined that Wesco, as insurer of the loaner vehicle operated by Rhodes, was liable for the benefits paid to Rhodes.

In August 2019, Wesco commenced this proceeding to vacate the arbitration award. The Supreme Court denied the petition and, in effect, dismissed the proceeding. Wesco appeals.

For the reasons set forth in Matter of Wesco Ins. Co. v GEICO Indem. Co. (211 AD3d 731 [2022] [decided herewith]), the Supreme Court properly denied the petition to vacate the arbitration award and, in effect, dismissed the proceeding. Connolly, J.P., Iannacci, Ford and Voutsinas, JJ., concur.