CHICAGO INSURANCE COMPANY, APPELLANT,
v.
BERNARD TARR AND PATRICIA TARR, HIS WIFE, APPELLEES
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Chicago Insurance Company appealed a summary judgment enforcing an ex parte arbitration award against it in an uninsured motorist claim. The court reversed, holding that ex parte arbitration awards cannot be enforced unless the insurance policy explicitly provides for ex parte arbitration, and that the proper procedure was for the Tarrs to compel arbitration through the court.
Ex parte arbitration awards will not be enforced unless the insurance policy explicitly provides for ex parte arbitration. Neither Chicago's nor Travelers' policies provided for ex parte arbitration. The proper procedure was for the Tarrs to file an application to compel arbitration with the court to resolve the dispute over whether Chicago was obligated to submit to arbitration.
[1] An ex parte arbitration award will not be enforced unless the insurance policy expressly provides for ex parte arbitration.
[2] When a dispute exists regarding an insurer's obligation to arbitrate, a party should seek a court order to compel arbitration rather than proceeding ex parte.
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Join FLexlaw to unlock all legal intelligence“Ex parte arbitration awards will not be enforced unless the insurance policy provides for ex parte arbitration.”
Establishes the fundamental rule that ex parte arbitration requires express policy authorization
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Join FLexlaw to unlock all legal intelligenceMr. Tarr was injured in an automobile accident allegedly caused by a phantom vehicle. He had primary uninsured motorist coverage with Travelers Insura…
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PER CURIAM.
Chicago Insurance Company [Chicago] appeals from a final summary judgment entered in favor of the plaintiffs, Bernard Tarr and Patricia Tarr, and an order enforcing an ex parte arbitration award in favor of the Tarrs. We reverse.
Mr. Tarr was involved in an automobile accident which allegedly occurred when a phantom vehicle ran a stop sign. At the time of the accident, Mr. Tarr had primary uninsured motorist coverage with Travelers Insurance Company [Travelers] and excess un-derinsured/uninsured motorist coverage with Chicago.
The Tarrs asserted uninsured/underin-sured motorist claims against Chicago and Travelers seeking arbitration. In response, Chicago denied coverage and refused to arbitrate based on its belief that, pursuant to its policy, it was not required to arbitrate. It was the Tarrs’ position that Chicago was bound by Travelers’ arbitration clause since Chicago’s policy mandated that Chicago be bound by the “terms and conditions” of Travelers’ policy.1
Subsequently, the Tarrs sought arbitration only against Travelers; Chicago was not made a party to the arbitration. Moreover, the Tarrs never made any efforts to compel Chicago to arbitrate. Shortly before the scheduled arbitration, Travelers settled with the Tarrs and withdrew its defense arbitrator. As-a result, the arbitration was conducted ex parte. The arbitration resulted in an award of approximately $300,000.00 in favor of the Tarrs.
The Tarrs filed a second amended motion to enforce the arbitration award. The parties filed cross-motions for summary judgment. The trial court granted the Tarrs’ motion for summary judgment and motion to enforce the ex parte arbitration award against Chicago. This appeal follows.
Ex parte arbitration awards will not be enforced unless the insurance policy provides for ex parte arbitration. Cooper v. State Farm Fire & Casualty Co., 266 So. 2d 181 (Fla. 3d DCA 1972). In the instant case, there is no doubt that neither Chicago’s or Travelers’ policies provided for ex parte arbitration. Instead of knowingly proceeding with an ex parte arbitration, it would have been appropriate for the Tarrs to file an application to compel arbitration with the court to resolve the dispute as to whether Chicago is obligated to submit to arbitration. See §§ 682.03, 682.17, Fla.Stat. (1991); Thomas W. Ward & Assoc., Inc. v. Spinks, 574 So. 2d 169 (Fla. 4th DCA 1990), rev. denied, 583 So. 2d 1037 (Fla.1991); Cooper, 266 So. 2d at 183; see also 4 Fla.Jur.2d Arbitration and Award §§ 43-50 (1994). “The trial court’s role when considering applications to compel arbitration under Section 682.03, Florida Statutes (1987), is limited to determining (1) whether a valid written agreement exists containing an arbitration clause, (2) whether an arbitrable issue exists, and (3) whether the right to arbitrate was waived.” Piercy v. School Bd. of Washington County, Fla., 576 So. 2d 806, 807 (Fla. 1st DCA 1991).
Accordingly, we reverse and remand for further proceedings consistent with this opinion.2
. Chicago's policy provided as follows: "The company agrees to pay all sums which the insured or his legal representative shall be legally entitled to recover as damages from the owner or operator of an uninsured or underinsured automobile, in excess of the underlying limits, provided coverage hereunder for loss involving such uninsured or underinsured automobile apply only in accordance with the terms and conditions of the underlying uninsured and underinsured motorists insurance provided to the insured at the time of loss.”
. As a result of the disposition of this case, we do not reach the remaining points raised on appeal.
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United States Fid. & Guar. Co. v. Juan and Julia Romay, 744 So. 2d 467 (Fla. 3d DCA 1999)…the courts’ consideration of claims for arbitration to 1) whether a valid written agreement exists containing an arbitration clause; 2) whether an arbitrable issue exists; and 3) whether the right to arbitrate was waived); Chicago Ins. Co. v. Tarr, 638 So. 2d 106 (Fla. 3d DCA 1994) (quoting Piercy v. School Bd. of Wash. County, 576 So. 2d 806 (Fla. 1st DCA 1991)). Arbitrable issues involved with appraisal, by their nature, are narrowly restricted to the resolution of specific issues of actual cash value and…
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ARI Mut. Ins. Co. v. Hogen, 734 So. 2d 574 (Fla. 3d DCA 1999)…trial court’s role when considering applications to compel arbitration includes determining whether the right to arbitrate was waived. Phillips v. General Accident Ins. Co. of America, 685 So. 2d 27, 29 (Fla. 3d DCA 1996); Chicago Ins. Co. v. Tarr, 638 So. 2d 106, 108 (Fla. 3d DCA 1994); Piercy v. School Bd. of Washington County, Fla., 576 So. 2d 806, 807 (Fla. 1st DCA 1991). However, Hogen, in opposition, cites to Federated Department Stores, Inc. v. Pavarini Construction Co., 425 So. 2d 1212 (Fla. 4th DCA…
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Phillips v. Gen. Accident Ins. Co. of Am., 685 So. 2d 27 (Fla. 3d DCA 1996)…3, Florida Statues (1987), is limited to determining (1) whether a valid written agreement exists containing an arbitration clause, (2) whether an arbitrable issue exists, and (3) whether the right to arbitrate was waived.” Chicago Ins. Co. v. Tarr, 638 So. 2d 106 (Fla. 3d DCA 1994)(quoting Piercy v. School Bd. of Washington County, 576 So. 2d 806 (Fla. 1st DCA 1991)). The above inquiry constitutes the sole subject of the discovery requests generated by the homeowner in this case. The homeowner’s discovery re…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Piercy v. The Sch. Bd. OF Wash. Cnty., 576 So. 2d 806 (Fla. 1st DCA 1991)
- Thomas W. Ward & Assoc., Inc. v. Spinks, 574 So. 2d 169 (Fla. 4th DCA 1990)
- Cooper v. State Farm Fire & Cas. Co., 266 So. 2d 181 (Fla. 3d DCA 1972)