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COA: Parties must arbitrate dispute over insurance coverage

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The Indiana Court of Appeals found a trial court erred when it failed to enforce an arbitration provision of an insurance policy issued by Pekin Insurance Co. and ordered a couple’s lawsuit against their insurer stayed until arbitration is complete.

Carol and Jose Hanquiers sued Joseph Hall and Pekin Insurance Co. seeking damages from Hall stemming from an auto collision that injured Carol Hanquiers severely. The Hanquiers also sought underinsured motorist benefits from Pekin.

Pekin sought to arbitrate the dispute for underinsured motorist benefits based on a provision of the policy that says, “either party may make a written demand for arbitration” if the insurer and the insured don’t agree whether the insured can recover those damages. Pekin requested a stay pending arbitration.

The trial court denied Pekin’s requests, leading to this appeal.

In Pekin Insurance Company v. Jose and Carol Hanquier and Joseph Hall, 55A04-1208-CT-401, Pekin argued that the policy provides arbitration is mandatory when requested by either party; the Hanquiers took the position that the word “may” makes arbitration permissive and not mandatory.

“Under the policy, either Pekin or the insured ‘may’ make a demand for arbitration, but neither is required to make such a written demand. However, once either party makes a written demand for arbitration, arbitration becomes mandatory,” Judge James Kirsch wrote. He pointed to the use of “will” later in the section regarding arbitrator selection and coverage of costs.

The trial court should have enforced the arbitration provision as required by Indiana Code 34-57-2-3(a), the judges held, as well as granted the stay pending arbitration. The case is remanded for further proceedings.

 

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  1. Such things are no more elections than those in the late, unlamented Soviet Union.

  2. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  3. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  4. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  5. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

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