State Farm Insurance v. Credle

CPLR 7511 provides that an arbitration award should be vacated where an arbitrator exceeds the limits of his powers and the rights of a party are prejudiced. An award made in excess of the contractual limits of an insurance policy is an action in excess of authority (see, Matter of Sagona v State Farm Ins. Co., 218 AD2d 660, 661; Matter of Mele v General Acc. Ins. Co., 198 AD2d 731, 732). In this case, an award of $10,000 was made to each of three claimants, occupants of an automobile with uninsured motorist coverage, while the express terms of the contract limited the liability of the…