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In the Matter of ALLSTATE INSURANCE COMPANY, Appellant, v. AMERICAN ARBITRATION ASSOCIATION, Respondent.

Ordered that the order is reversed, on the law and facts, the petition is granted, the cross motion is denied, and the arbitration award is vacated.

The Supreme Court improperly denied the petition for vacatur of an arbitration award and granted the respondent's cross motion to confirm the award. Under the close scrutiny with which we must view the arbitrator's determination in a compulsory arbitration ( see Matter of Motor Veh. Acc. Indem. Corp. v. Aetna Cas. Sur. Co., 89 NY2d 214, 223), the arbitrator's award was not supported by the evidence in the record and was not rationally based ( see Matter of Scher v. State Farm Ins. Co., 240 AD2d 415; see also Matter of Kemper Ins. Co. v. Westport Ins. Co., 9 AD3d 431; Matter of State Farm Mut. Auto. Ins. Co. v. Arabov, 2 AD3d 531).

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IN THE MATTER OF ALLSTATE INSURANCE
(Feb 14, 2006)