State Farm moved to confirm an arbitrators award dated January 7, 2006 concerning the supplementary uninsured motorist endorsement of its policy. There had been a prior motion to vacate the arbitrators decision dated March 2, 2005 awarding $17,000 to respondent. Petitioner argued that at the arbitration hearing, it learned for the first time there was another entity involved in the motor vehicle accident and that that entity settled with the respondent for $25,000.

This court in an order dated August 31, 2005 granted State Farms motion to vacate the award and remanded the case back to the arbitrator to consider the $25,000 prior settlement with the non-party.

The arbitrator, Howard Bushin, then reissued another decision finding respondent is entitled to zero dollars in view of the fact that claimant has already received the sum of $25,000 from the other vehicle involved in this accident, State Farm is entitled to a set off in said amount.

The respondent cross moved to vacate the arbitrators second decision of January 7, and affirm the arbitrators original decision of March 2, 2005.

The claimant contended that the second award of January 7 by the arbitrator, without a hearing, granting State Farm a set-off of $25,000 from a non-negligent tortfeasor, is irrational as a matter of law and should be vacated. The arbitrator specifically found the uninsured driver to be negligent, and omitted any finding of the settling non-party.

State Farms policy provides as follows: The maximum amount payable under this coverage shall be the policys limit for this coverage reduced and thus offset by motor vehicle bodily injury liability insurance policy or bond payments received from, or on behalf of, any negligent party involved in the accident, as specified in the SUM endorsement.

The claimant argued that since the arbitrator did not specifically find the settling non-party to be negligent, the court should assume him not to be negligent and therefore the $25,000 prior settlement should not be considered as a set-off.

The court held that This court finds there to be no determination whether the settling non-party was negligent or not, nor does this court find the arbitrators decision of January 7, 2006 to be irrational. Accordingly, the petitioners motion to confirm the January 7, 2006 arbitration award of zero dollars is granted.

State Farm Mut. Auto. Ins. Co. v. Gutkin, 2006 NY Slip Op 50593 (Supreme Court, Richmond County) (MINARDO, j)