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Scott v. Commerce Insurance Co.11/3/2004
er's liability for the hit-and-run accident. See Aetna Cas. & Sur. Co. v. Poirier, 371 Mass. at 259-260; Royal Indem. Co. v. Blakely, 372 Mass. at 87 n.2. Even though the award was in excess of the applicable policy limits, Scott had no legal right to recover insurance benefits over and above the insurance benefit coverage limits that he and Commerce had agreed to in the contract.
Therefore, by the terms of the arbitration award, Commerce was obligated to provide insurance benefits to Scott, and once Commerce did so by paying Scott the full amount of its policy limits, the parties' dispute (at least as to scope of insurance benefits payable to Scott) was concluded. See Murphy v. National Union Fire Ins. Co., 438 Mass. 529, 533 (2003), where the court ruled: "once full payment of the arbitration award was made . . ., confirmation of the award became moot because the obligation owed to the [insured] had been satisfied."
As in Murphy, once Commerce had tendered full payment of its insurance benefit obligation to Scott, confirmation of the arbitration award became moot. Though Commerce undoubtedly could have taken some measures in the arbitration process, or in Superior Court, so as to clarify this point and conserve the time and expense of both the court and the parties, Commerce did not waive its right to make the argument by failing to timely commence an action under c. 251 to modify or vacate the arbitration award. The trial court's order and final judgment confirming the award was error.
It follows that the judgment entered below by the Superior Court must be reversed.
So ordered.
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