THE TRAVELERS INSURANCE COMPANY, A FOREIGN CORPORATION, APPELLANT,
v.
COLUMBUS LEE AND BESSIE LEE, HIS WIFE, APPELLEES

Fla. 3d DCA | 1978-04-25
No. 77-1705
Before KEHOE, J., and BOYD, JOSEPH A., Jr., and CHARLES CARROLL (Ret.), Associate Judges.
358 So. 2d 88 Florida District Court of Appeal, Third District (1978) Positive Treatment
Cited by 12 cases

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Synopsis

Travelers Insurance appealed the trial court's denial of its motion to enjoin arbitration proceedings in an uninsured motorist claim. The Third District Court of Appeal reversed, holding that questions of insurance coverage are judicial matters that must be decided by courts, not through arbitration, even when an insurance policy contains arbitration provisions.


Holding

The court held that questions of insurance coverage are judicial matters that must be determined by courts, not arbitration panels, notwithstanding any arbitration provisions in an insurance contract. Therefore, the trial court erred in denying Travelers' motion to enjoin the arbitration proceedings, and the case must be remanded for the courts to determine the coverage question.


Headnotes

[1] The question of insurance policy coverage is a judicial matter to be determined by the courts, notwithstanding any arbitration provisions in the policy.

[2] A trial court should grant a motion to enjoin arbitration proceedings when a bona fide issue of coverage under an insurance policy exists.

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Key Quotes

“in this State (notwithstanding any provisions pertaining to arbitration in an insurance contract) the question of coverage was a judicial matter to be determined in the courts”

Establishes the core holding that coverage is a judicial matter not subject to arbitration regardless of policy provisions.

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Facts & Procedural History

Columbus Lee purchased an auto insurance policy from Travelers. While operating the insured vehicle, Lee was involved in an accident with an uninsured…

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Opinion of the Court
KEHOE, Judge.

KEHOE, Judge.

Appellant, plaintiff below, brings this interlocutory appeal from orders of the trial court dated July 19 and 22, 1977, denying its motion to enjoin arbitration proceedings. For the reasons set forth below, we reverse. Appellee Columbus Lee purchased an automobile insurance policy from appellant. Subsequently appellee Columbus Lee, while operating an automobile insured under the policy, was involved in an automobile accident with Jimmy L. Franklin. As a result of the accident, appellee Columbus Lee sustained personal injuries and collected personal injury protection benefits from appellant. Thereafter, appellee Columbus Lee, along with his wife, alleged that Jimmy L. Franklin and his wife, Shirley Franklin, the owner of the vehicle involved, were uninsured and invoked the uninsured motorists provision of the policy with appellant. Subsequently, pursuant to the policy provisions, appellant states that it sought to obtain appellees’ sworn statements and other information in regard to their claim. Apparently, these attempts were met with considerable resistance. During this time, an arbitration panel was selected; thereafter, on May 11, 1977, the panel conducted a hearing. At this hearing, appellant’s request for a continuance was refused. Appellant then participated in the hearing which was not concluded, but continued to August 11, 1977. After the hearing appellant filed a complaint for declaratory relief seeking, among other things, to ascertain the question of whether appellees were covered under the policy for their claim for uninsured motorists benefits. Appellant also filed a motion to enjoin the arbitration proceedings set for August 11, 1977. From the trial court’s orders denying this motion, appellant brings this interlocutory appeal.

Appellant’s basic point on appeal is that the trial court erred by denying its motion to enjoin the arbitration proceedings because coverage was an issue in the matter and this question was a judicial matter which should be determined by the courts.

In Aetna Cas. & Sur. Co. v. Goldman, 346 So. 2d 111, 112 (Fla.3d DCA 1977), we stated as follows:

“This court [3d DCA], in Cruger v. Allstate Insurance Company, 162 So. 2d 690 (Fla.3rd D.C.A. 1964), clearly outlined that in this State (notwithstanding any provisions pertaining to arbitration in an insurance contract) the question of coverage was a judicial matter to be determined in the courts. This case has been followed in Zeagler v. Commercial Union Insurance Company of New York, 166 So. 2d 616 (Fla.3rd D.C.A. 1964); Jones v. New Amsterdam Casualty Company, 213 So. 2d (Fla.3rd D.C.A. 1968); Perez v. State Automobile Insurance Association, 270 So. 2d 377 (Fla.3rd D.C.A. 1972); and Government Employees Insurance Company v. Mirth, 333 So. 2d 545 (Fla.3rd D.C.A. 1976).”

Although appellant’s complaint for declaratory relief sought a resolution of matters in addition to the question of coverage, we believe that the complaint created a. bona fide issue over the question of coverage under the policy. Based on the authorities set forth above, a question of coverage is a proper one for declaratory relief and should be made by the courts. See also Tavares v. Allstate Ins. Co., 342 So. 2d 551 (Fla.3d DCA 1977). Therefore, in the instant case, the trial court should have granted appellant’s motion to enjoin the arbitration proceedings. See generally Section 682.03(4), Florida Statutes (1975). Further, under the circumstances of this case, although appellant participated in the arbitration process through one hearing which was continued, we do not find that this amounted to any waiver or foreclosure of its right to bring an action for declaratory relief to determine the question of coverage under the policy. In the light of this determination, it is unnecessary for us to consider the other aspects of appellant’s contentions on appeal. Accordingly, the orders appealed are reversed and the cause is remanded for further proceedings not inconsistent with this opinion.

Reversed and remanded.


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Citator

Cited By

  • The Travelers Ins. Co. v. Laurence H. Wilson, 371 So. 2d 145 (Fla. 3d DCA 1979)
    …rties relating to coverage, liability and damages in order that the rights of the parties not be determined in a piecemeal fashion. Cruger v. Allstate Insurance Company, 162 So. 2d 690 (Fla. 3d DCA 1964). See also Travelers Insurance Company v. Lee, 358 So. 2d 88 (Fla. 3d DCA 1978); Ta-vares v. Allstate Insurance Company, 342 So. 2d 551 (Fla. 3d DCA 1977); Perez v. State Automobile Insurance Association, 270 So. 2d 377 (Fla. 3d DCA 1972); and Zeagler v. Commercial Union Insurance Company of New York, 166 So.…
  • The Travelers Ins. Co. v. Emery, 579 So. 2d 798 (Fla. 1st DCA 1991)
    …384 So. 2d 34 (Fla. 2d DCA 1980) (since the validity and effectiveness of the endorsement or instrument allegedly terminating the insurance contract was at issue, the same was the proper subject for declaratory judgment); Travelers Ins. Co. v. Lee, 358 So. 2d 88 (Fla. 3d DCA 1978); Tavares v. Allstate Ins. Co., 342 So. 2d 551 (Fla. 3d DCA 1977); Perez v. State Auto. Ins. Ass'n, 270 So. 2d 377, 378 (Fla. 3d DCA 1972); Cruger v. Allstate Ins. Co., 162 So. 2d 690 (Fla. 3rd DCA 1964). . State Farm Fire & Casua…
  • United Servs. Gen. Life Co. v. Bauer, 568 So. 2d 1321 (Fla. 2d DCA 1990)
    …istence of coverage in uninsured motorist insurance contracts is a matter for judicial determination and not a question to be arbitrated. United States Fidelity and Guar. Co. v. Woolard, 523 So. 2d 798 (Fla. 1st DCA 1988); Travelers Ins. Co. v. Lee, 358 So. 2d 88 (Fla. 3d DCA 1978). Just as the arbitrators in those cases had to know the scope of coverage before arbitration could begin, the Iowa arbitrators in the instant case must know the scope of a contract before they can determine whether United Services…

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