Bradley v. Allstate Insurance
Bradley v. Allstate Insurance
Opinion of the Court
Plaintiff filed a demand for arbitra
On August 25, 1981, proofs were taken by an arbitration panel consisting of Ivy T. Riley (plaintiffs arbitrator), Robert M. Petteys (defendant’s arbitrator), and Elmer Roller (neutral arbitrator). At the conclusion of the proofs, Mr. Roller excused the parties’ attorneys and "polled” the other two arbitrators to ascertain their initial impressions as to the merits of plaintiffs claim. Ms. Riley expressed an opinion that plaintiff should receive the policy limits — $20,000. Mr. Petteys expressed an opinion that plaintiff should receive nothing. Mr. Roller stated that he preferred to have an unanimous decision. Mr. Petteys then responded that he could award $2,000 to $3,000, but no more. Ms. Riley did not change her position. This deliberation lasted approximately 30 minutes.
At the conclusion of this meeting, the arbitrators exchanged telephone numbers. Mr. Roller requested the arbitrators to review the materials once again and indicated that he would telephone each arbitrator sometime after Labor Day. Mr. Roller believed the matter could be handled over the telephone through conferences between himself and one arbitrator, and then himself and the other arbitrator.
On September 8, 1981, Mr. Petteys telephoned Mr. Roller and informed him that he could award another $1,000 to $2,000. According to Mr. Roller, between September 8 and 15, he spoke to Ms. Riley twice and she indicated she had not yet finished reviewing the materials and was still at
On September 24, 1981, according to Mr. Roller’s testimony, Ms. Riley telephoned him and indicated that her position had not changed. Mr. Roller then stated to her that he and Mr. Petteys would issue a majority award. Ms. Riley testified that she could not remember conferring directly with Mr. Roller on that date but remembered that she informed his secretary that she could not agree with the $4,000 award. Mr. Roller attempted unsuccessfully to contact Ms. Riley once more on September 28 or 29, 1981.
On October 2, 1981, Mr. Roller sent a letter to the American Arbitration Association informing it that a majority decision would be rendered. On October 8, 1981, the award was signed by Mr. Roller and Mr. Petteys. Ms. Riley was designated as dissenting, but did not sign the award.
Plaintiff filed a complaint for declaratory judgment on October 26, 1981, to vacate the award. Plaintiff alleged in her complaint, "corruption, fraud, undue means, evidence partiality, and/or misconduct in the determination of such arbitration award”. The trial court ordered an evidentiary hearing from which the above facts were established. Before making its findings, the trial court stated "nothing that this court will say is intended to reflect adversely on the efforts of any of the three arbitrators”. The trial court then vacated the award and ordered a new hearing
Plaintiff initially claims that the method of deliberation utilized herein denied plaintiff’s arbitrator a reasonable and equal opportunity to express her views. Plaintiff claims that Ms. Riley was excluded from the deliberations and that such exclusion constituted "misconduct” within the meaning of GCR 1963, 769.9(l)(b). As such plaintiff contends the trial court’s vacation of the award was proper.
The issue we must decide is whether the deliberation procedure adopted and utilized by the neutral arbitrator, Mr. Roller, constitutes misconduct within GCR 1963, 769.9(l)(b). This is a case of first impression.
This Court is reluctant to become involved in reviewing the methods of deliberations used by arbitrators in reaching their decisions. Such review would result in our setting guidelines on how arbitrators should deliberate and would end up with courts constantly looking behind awards on many grounds. Therefore, with regard to challenges to the method by which the arbitrators reach their decision, we hold that anything short of actual exclusion from deliberations does not constitute "misconduct” within GCR 1963, 769.9(l)(b) and is therefore not a ground for setting aside an arbitration award.
We find that actual exclusion did not exist here. There is no dispute that a hearing was conducted by all three arbitrators. The arbitrators deliberated after this hearing for one-half hour. There is no dispute that plaintiff’s arbitrator had the same
We hold neither the record, nor GCR 1963, 769.9(1), nor any policy considerations support the trial court’s determination that tripartite communication subsequent to the undisputed tripartite discussion following the hearing is a prerequisite to the rendition of a valid arbitration award. We therefore reverse the trial court’s decision and reinstate the original arbitration award. See also In the Matter of Delmar Box Co, Inc, 309 NY 60, 63; 127 NE2d 808, 811 (1955); GCR 1963, 769.7; In the Matter of Arbitration Between American Eagle Fire Ins Co and New Jersey Ins Co, 240 NY 398; 148 NE 562 (1925).
Reversed.
Reference
- Full Case Name
- BRADLEY v. ALLSTATE INSURANCE COMPANY
- Cited By
- 1 case
- Status
- Published