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. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

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