Kreisman Law Offices Professional Corporation
The plaintiffs in this case filed a complaint against the defendant insurance company, United Equitable Insurance Co., alleging breach of contract in bad faith when United Equitable would not pay the plaintiffs’ claims from an auto accident involving an uninsured motorist.
The plaintiffs filed a motion for summary judgment, which the trial judge granted. On appeal, United Equitable argued that the court erred because the policy required plaintiffs to unequivocally demand arbitration and appoint an arbitrator within two years of the incident, which plaintiffs did not do.
The appeals panel stated that the court erred in granting plaintiffs’ motion. The arbitration provision in the insurance policy stated that disagreements concerning uninsured motorist coverage and damages “shall be submitted to arbitration” within two years. A party sufficiently commences arbitration if the request for arbitration is unequivocal and made according to the terms of the policy.