THE TRAVELERS INSURANCE CO., APPELLANT,
v.
PHILIP A. LUCKETT, APPELLEE

Fla. 3d DCA | 1973-06-19
Nos. 72-1204 and 72-1248
Before BARKDULL, C. J., and PEARSON and HENDRY, JJ.
279 So. 2d 885 Florida District Court of Appeal, Third District (1973) Positive Treatment
Cited by 11 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Travelers Insurance appeals a declaratory relief judgment allowing an insured to pursue a second arbitration against Travelers for damages from an uninsured motorist accident, despite having already received a $3,750 arbitration award from another insurer covering the same accident. The court reverses, holding that an insured cannot use multiple insurance policies to obtain successive damage determinations for the same loss.


Holding

The court holds that an insured cannot pursue a second arbitration to redetermine damages for the same accident after receiving a binding arbitration award. The essence of arbitration is an agreement to be bound by the factual determination of the arbitrator, and an insured cannot indirectly challenge that determination by seeking a new arbitration under another policy.


Headnotes

[1] A prior arbitration award determining an insured's damages is binding on the parties.

[2] An insured cannot seek a second arbitration to re-litigate damages already determined in a prior arbitration.

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Key Quotes

“The very essence of an arbitration is an agreement to be bound by the factual determination of the arbitrator and thus end the factual controversy.”

Establishes the fundamental principle that arbitration awards are binding and conclusive on factual matters, preventing collateral attacks through successive arbitrations.

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Facts & Procedural History

Luckett was involved in an automobile accident with an uninsured motorist while covered by two separate policies: one from Travelers Insurance and one…

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Opinion of the Court
HENDRY, Judge.

HENDRY, Judge.

In these consolidated appeals appellant-plaintiff insurance company seeks review of an adverse final judgment entered in an action for declaratory relief and an award of attorney’s fee therein. Appellant sought a declaration of its liability to appellee-de-fendant under an uninsured motorist provision of an automobile liability policy issued by it to appellee.

Appellee insured was involved in an automobile accident with an uninsured motorist while covered by two separate insurance policies, one issued by appellant and one issued by Midwest Mutual Insurance Company. Both policies contained arbitration clauses in the event of a dispute as to claimed damages or liability of the uninsured motorist.1 Appellee filed a claim for damages with Midwest Mutual which resulted in appellee receiving a $3,750.00 arbitration award that was paid and satisfied. Appellee then asserted a claim for *886arbitration to assess his damages against appellant, Traveler’s Insurance Company, for the same injuries arising out of the same accident.

Appellant, Traveler’s, instituted this action to have its rights declared as against appellee’s claim and requesting that appel-lee be enjoined from prosecuting his claim under the policy. As grounds therefor, appellant alleged that the appellee was estopped2 from asserting his claim due to the effect of the prior arbitration and satisfaction arising therefrom. The trial court disagreed and dismissed the action and allowed appellee to continue prosecuting his claim. We reverse.

The issue before us is the effect to be given to the first arbitration’s determination of appellee’s damages of $3,750.00, and whether appellee can attempt to gain a second, hopefully greater, determination of his damages under the second arbitration.3

It has long been established in this state that a valid agreement to arbitrate the amount of damages between an insured and insurer, and a subsequent award based thereon is binding on the parties. Hanover Fire Ins. Co. v. Lewis, 28 Fla. 209, 10 So. 297; American Fidelity Fire Ins. Co. v. Richardson, Fla.App.1966, 189 So.2d 486; Bohlmann v. Allstate Ins. Co., Fla.App.1965, 171 So.2d 23. Moreover, such an agreement to arbitrate is governed by the provisions of the Florida Arbitration Code4 and the procedures for challenging the propriety or regularity of the award or proceedings are set out specifically therein.5 Netherlands Ins. Co. v. Moore, Fla.App.1966, 190 So.2d 191; Hall v. Nationwide Mutual Ins. Co., Fla.App.1966, 189 So.2d 224; Bohlmann v. Allstate Ins. Co., supra; Cruger v. Allstate Ins. Co., Fla.App.1964, 162 So.2d 690.

In the case sub judice, appellee does not believe that the initial factual determination of his damages was correct or sufficient. He, thus, attempts to acquire a second determination of his damages under the arbitration clause of appellant’s policy. The very essence of an arbitration is an agreement to be bound by the factual determination of the arbitrator and thus end the factual controversy. Bankers & Shippers Ins. Co. v. Gonzalez, Fla.App.1970, 234 So.2d 693. Thus, appellee would not have been entitled to challenge the factual nature of the damage award after the first *887arbitration.6 He attempts here to indirectly challenge that finding. It is well established that a party may not do indirectly what he is forbidden to do directly. Cf., Bankers & Shippers Ins. Co. v. Gonzalez, supra. We are, therefore, of the opinion that the chancellor erred in finding that the appellee was entitled to a second chance to establish his damages for this accident.

The appellee has directed our attention to the following wording in the case of Sellers v. United States Fidelity & Guaranty Co., Fla.1966, 185 So.2d 689, 692, in support of his contention that he is entitled to pursue his claim against appellant:

“[4] By the foregoing paragraph we do not mean to imply that an insured protected by multiple policies issued under § 627.0851 shall be delayed or frustrated in effecting settlement by having to pursue his claim of loss against all of the insurers jointly. He can proceed against any one or more of them, but in any event he shall not be entitled to recover from all of them more than the amount of his loss from bodily injury caused by an uninsured motorist and, of course, his recovery from any one of them shall be within the limit of the particular policy. No doubt each insurer will properly insist that the insured inform it of the total amount of his loss and whether or not he has other similar insurance and whether any settlement has been reached with another insurer before settling a claim. As a practical matter when settlement or recovery of the loss between insured and insurer is effected it will then be in order for the insurers to make pro-ration inter se.”

Accord, Allstate Ins. Co. v. Dairyland Ins. Co., Fla.1972, 271 So.2d 457. We find no support for appellee’s position within these cases for they do not deal with the issue before us — whether the insured is entitled to a second arbitration to again determine his damages for the same accident. The quotation solely establishes the right of a claimant to seek a full satisfaction from one or more insurance carriers based on a finding of damages that may or may not be covered under one or more policy limits. It does not in any way establish the right of a claimant to seek a new determination of his damages arising from the same accident for each insurance policy that affords possible coverage. The issue of a pro-ration between the respective insurers is not the issue before us, as it was in the Sellers and Dairyland cases, supra.

Accordingly, the final judgment appealed from and the attorney’s fee award entered therein is hereby reversed and remanded with directions for the trial court to enter judgment in favor of the appellant.

Reversed and remanded with directions.


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Citator

Cited By

  • …be followed, not a choice to arbitrate in a foreign jurisdiction or a stipulation that the Florida Arbitration Code shall not apply. Hall v. Nationwide Mutual Insurance Co., 189 So. 2d 224 (Fla. 4th DCA 1966). See Travelers Insurance Co. v. Luckett, 279 So. 2d 885 n. 1 (Fla. 3d DCA 1973). Having concluded that the arbitration clause is valid and enforceable, we now address Fairways’ contention that Commercial waived its right to demand arbitration. The waiver, says Fairways, arises from Commercial’s failure…
  • Fla. Farm Bureau Cas. Ins. Co. v. Sheaffer, 687 So. 2d 1331 (Fla. 1st DCA 1997)
    …ed. Because we conclude that the instant appraisal provision constitutes an arbitration agreement, we also conclude that the agreement is governed by the Florida Arbitration Code, chapter 682, Florida Statutes (1995). Travelers Ins. Co. v. Luckett, 279 So. 2d 885, 886 (Fla. 3d DCA 1978)(an agreement to arbitrate amount of damages between insurer and insured is governed by the provisions of the Florida Arbitration Code). In Cassava v. Wofford, 55 So. 2d 102, 105 (Fla.1951), the supreme court explained the imp…
  • Berger v. Fireman's Fund Ins. Co., 515 So. 2d 997 (Fla. 3d DCA 1987)
    …Shippers Ins. Co. v. Gonzalez, 234 So. 2d 693, 695 (Fla. 3d DCA 1970) (“very essence of an arbitration is an agreement to be bound by the factual determination of the arbitrator and thus end the factual controversy”); Travelers Ins. Co. v. Luckett, 279 So. 2d 885 (Fla. 3d DCA 1973) (same). The instant arbitration provision which permits either party to repudiate the agreement if dissatisfied with an arbitration award in excess of $10,000, contravenes the Arbitration Code and public policy as expressed in jud…

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