Willis v. United Equitable Insurance Co.

Plaintiffs filed a complaint against Defendant, their insurance company, alleging breach of contract in bad faith when Defendant would not pay their claims from an accident involving an uninsured motorist. Plaintiffs then filed a motion for summary judgment which Court granted. On appeal, Defendant argued that Court erred, because the policy required Plaintiffs to unequivocally demand arbitration and appoint an arbitrator within two years of the accident, which Plaintiffs did not do. Court erred in granting Plaintiff’s motion. The arbitration provision in the policy stated that disagreements concerning uninsured motorist coverage and damages “shall be submitted to arbitration” within two years. A party sufficiently commences arbitration if their request for arbitration is unequivocal and made according to the terms of the policy. Plaintiff’s letters stating “[w]e hereby make demand for arbitration if this claim is not resolved within two years after the accident” was a contingent demand, and thus did not commence arbitration.