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In re the Arbitration between Royal Chrysler-Oneonta, Inc.
Citations: 243 A.D.2d 1007; 663 N.Y.S.2d 410; 1997 N.Y. App. Div. LEXIS 10869
Court: Appellate Division of the Supreme Court of the State of New York; October 29, 1997; New York; State Appellate Court
Yesawich Jr. J. cross-appeals from a Supreme Court order denying his application to vacate an arbitration award related to the sale of a used 1990 Chevrolet pickup truck. Respondents purchased the truck for $12,945, aware of required repairs including a transmission-related noise. After discovering the repairs were not completed, respondents took delivery and attempted to have the issues fixed over two months, but multiple repair attempts, including three transmission replacements, failed to resolve the problems. Eventually, respondents sought arbitration under the 'Used Car Lemon Law,' resulting in an award for a full refund plus filing fees. Petitioner’s request to modify the award was denied. The Supreme Court confirmed the arbitrator's decision and imposed a $500 penalty for delay in compliance, while also sanctioning respondents' attorney for unjustified threats of sanctions. The court upheld the arbitrator's findings, indicating sufficient evidence of a transmission defect and that the petitioner failed to address the issues during the warranty period, thereby justifying the refund. The court found no merit in the petitioner’s claims regarding the award’s validity or alleged bias of the arbitrator. However, it deemed the imposition of sanctions against respondents' attorney inappropriate, requiring remittal for the attorney to present arguments on that issue. The order was modified to reverse the sanction while affirming the remainder of the decision.