ILNews

COA: Parties must arbitrate dispute over insurance coverage

Back to TopCommentsE-mailPrintBookmark and Share

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.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Hysteria? Really Ben? Tell the young lady reported on in the link below that worrying about the sexualizing of our children is mere hysteria. Such thinking is common in the Royal Order of Jesters and other running sex vacays in Thailand or Brazil ... like Indy's Jared Fogle. Those tempted to call such concerns mere histronics need to think on this: http://www.msn.com/en-us/news/us/a-12-year-old-girl-live-streamed-her-suicide-it-took-two-weeks-for-facebook-to-take-the-video-down/ar-AAlT8ka?li=AA4ZnC&ocid=spartanntp

  2. Hi I am Mr Damian Parker the creditor of Private loans, and I'm here to make your dreams come true to get a loan. Do you need a loan urgently? Do you need a loan to pay off your debts? Do you need a loan for expansion of your business or start your own business, we are here for you with a low interest rate of 3% and you can get a credit of 1,000 to 100,000,000.00 the maximum loan amount and up to 20 years loan duration. Contact us today for more information at dparkerservices@hotmail.com

  3. This is happening so much. Even in 2016.2017. I hope the father sue for civil rights violation. I hope he sue as more are doing and even without a lawyer as pro-se, he got a good one here. God bless him.

  4. JLAP and other courtiers ... Those running court systems, have most substance abuse issues. Probably self medicating to cover conscience issues arising out of acts furthering govt corruption

  5. I whole-heartedly agree with Doug Church's comment, above. Indiana lawyers were especially fortunate to benefit from Tom Pyrz' leadership and foresight at a time when there has been unprecedented change in the legal profession. Consider how dramatically computer technology and its role in the practice of law have changed over the last 25 years. The impact of the great recession of 2008 dramatically changed the composition and structure of law firms across the country. Economic pressures altered what had long been a routine, robust annual recruitment process for law students and recent law school graduates. That has, in turn, impacted law school enrollment across the country, placing upward pressure on law school tuition. The internet continues to drive significant changes in the provision of legal services in both public and private sectors. The ISBA has worked to make quality legal representation accessible and affordable for all who need it and to raise general public understanding of Indiana laws and procedures. How difficult it would have been to tackle each of these issues without Tom's leadership. Tom has set the tone for positive change at the ISBA to meet the evolving practice needs of lawyers of all backgrounds and ages. He has led the organization with vision, patience, flexibility, commitment, thoughtfulness & even humor. He will, indeed, be a tough act to follow. Thank you, Tom, for all you've done and all the energy you've invested in making the ISBA an excellent, progressive, highly responsive, all-inclusive, respectful & respected professional association during his tenure there.

ADVERTISEMENT