Justia Arbitration & Mediation Opinion Summaries

The primary issue in consolidated appeals was the scope of an automobile insurance policy’s arbitration provision. Two insureds with identical Allstate Insurance Company medical payments and uninsured/underinsured motorist (UIM) insurance coverage settled with their respective at-fault drivers for applicable liability insurance policy limits and then made medical payments and UIM benefits claims to Allstate. Allstate and the insureds were unable to resolve the UIM claims and went to arbitration as the policy required. The arbitration panels initially answered specific questions submitted about the insureds’ accident-related damages. At the insureds’ requests but over Allstate’s objections, the panels later calculated what the panels believed Allstate ultimately owed the insureds under their medical payments and UIM coverages and issued final awards. Allstate filed superior court suits to confirm the initial damages calculations, reject the final awards as outside the arbitration panels’ authority, and have the court determine the total amounts payable to the insureds under their policies. The judge assigned to both suits affirmed the final arbitration awards; Allstate appealed both decisions. The Alaska Supreme Court determined the arbitration panels had no authority to determine anything beyond the insureds’ damages arising from their accidents and because Allstate withheld its consent for the panels to determine anything else, the Court reversed the superior court’s decisions and judgments. The Supreme Court also reversed some aspects of the superior court’s separate analysis and rulings on legal issues that the panels improperly decided. Given (1) the arbitration panels’ damages calculations and (2) the Supreme Court's clarification of legal issues presented, the cases were remanded for the superior court to determine the amount, if any, Allstate had to pay each insured under their medical payments and UIM coverages. View "Allstate Insurance Company v. Harbour" on Justia Law

Following mediation, a trust beneficiary and a trustee signed a document purporting to settle a bitter family litigation and referring future disputes to the mediator for resolution. The beneficiary subsequently denied that she settled and asked the mediator to resolve the issue, but the mediator concluded that the parties had reached a binding settlement. The beneficiary tried to resurrect this issue in the superior court, but the court concluded that the mediator’s decision was within the scope of the authority conferred by the parties. After review, the Alaska Supreme Court concluded the superior court did not err by confirming the mediator’s decision. Furthermore, the court did not err by denying the beneficiary’s petition to review the trustee’s compensation, or by awarding Alaska Civil Rule 82 attorney’s fees to the trustee. View "Lee v. Sheldon" on Justia Law

Two credit card holders defaulted on their accounts, and the issuing bank elected to litigate debt-collection actions. After courts entered default judgments against both card holders, the card holders filed new and separate suits alleging that the bank violated the Uniform Trade Practices and Consumer Protection Act (UTPA) during the earlier debt collection actions. The bank moved in each case to arbitrate the UTPA claims, and the superior court stayed the UTPA litigation and ordered arbitration. The issue presented for the Supreme Court's review was whether the bank waived its right to demand arbitration of the subsequent UTPA claims by litigating the debt-collection claims. Because the Court concluded that the two claims were not sufficiently closely related, it held that the bank did not waive its right to demand arbitration of the separate UTPA claims. But The Court also concluded that it was error for the superior court to interpret the arbitration agreement on the question of the availability of statewide injunctive relief: the interpretation of an arbitration agreement is in the first instance a matter for the arbitrator. View "Hudson v. Citibank (South Dakota) NA" on Justia Law

An Alaska state trooper was terminated in part due to dishonesty. The Public Safety Employees Association (PSEA) filed a grievance on behalf of the discharged trooper and then invoked arbitration. An arbitrator reinstated the trooper, ruling that the State did not have cause to terminate him. The superior court upheld the arbitrator's ruling. The State appealed to the Supreme Court, arguing that the arbitrator committed gross error and that the reinstatement of the trooper was unenforceable. Upon review of the arbitrator's decision and subsequent superior court ruling, the Supreme Court held that the arbitrator's award in this case was not enforceable as a violation of public policy: "the State should be free to heighten its enforcement of ethical standards. . . We are [. . . ] troubled by the arbitrator's suggestion that the State's past lenience toward minor dishonesty requires it to be permanently lenient." Because the arbitrator's award was neither unenforceable nor grossly erroneous, the Court affirmed the superior court and the arbitration decision. View "Alaska v. Public Safety Employees Association" on Justia Law