In re the Arbitration bet. New Hampshire Insurance & Utilities Mutual Insurance
This case involves an appeal from an order that partially granted a petitioner's application to vacate an arbitration award. The underlying dispute arose from an accident involving a truck crane that injured Grady McClaney, an employee of Niagara Mohawk Power Corporation, who subsequently received workers' compensation benefits from the respondent carrier. McClaney settled a personal injury action against multiple parties for over $4 million, with Niagara Mohawk waiving its compensation lien as part of the settlement. Subsequently, the respondent initiated a loss transfer arbitration to recoup $50,000 in compensation benefits from the petitioner, Gallagher’s no-fault carrier, citing Insurance Law § 5105 (b) and Workers’ Compensation Law § 29 (1-a). The arbitration panel ruled in favor of the respondent, but the Supreme Court remanded the matter due to procedural defects. On appeal, the court reversed the Supreme Court's order, confirmed the arbitration award, and dismissed the petition, finding the panel's decision rational and the procedural defects non-prejudicial.