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Abdella v. United States Fidelity & Guaranty Company.

6/23/1999

Worcester.


June 4, 1998.


Arbitration, Insurance, Issue preclusion, Consumer Protection Act. Insurance, Arbitration, Unfair act or practice, Motor vehicle insurance. Consumer Protection Act, Insurance, Arbitration, Res judicata, Damages. Damages, Consumer protection case.


Civil action commenced in the Superior Court Department on March 25, 1992.


A motion for summary judgment was heard by James P. Donohue, J., and the case was heard by Francis R. Fecteau, J.


The plaintiff, John Abdella, filed an action in the Superior Court against the defendant, United States Fidelity & Guaranty Company (USF&G;. Abdella sought to recover damages against USF&G;for alleged violations of G. L. c. 93A, Sect. 2, and G. L. c. 176D, Sect. 3(9), relating to an underinsured claim under a motor vehicle liability policy.


After USF&G;filed an answer denying the allegations contained in the complaint, Abdella filed a motion for summary judgment. He claimed that, because an arbitrator had previously decided the issues of USF&G;s bad faith during the settlement process, and had awarded damages, USF&G;was precluded


from attempting to relitigate those matters. After a hearing, a Superior Court Judge denied Abdella's summary judgment motion. The matter then proceeded to trial before a different Superior Court Judge sitting without a jury. After the trial concluded, the Judge ruled in favor of USF&G;and ordered the case dismissed.


Abdella has appealed, claiming that (1) the motion Judge erred in denying his motion for summary judgment, and (2) the trial Judge committed error in finding in favor of USF&G;


We summarize the trial Judge's findings of fact. On October 13, 1988, Abdella was injured in an accident while operating a motor vehicle owned by his wife and insured with USF&G; USF&G;s policy had underinsured limits of $100,000 per person. The accident involved a collision with a second motor vehicle which was insured with Utica Mutual Insurance Company (Utica), which provided coverage of $20,000 per person.


Shortly after the accident, Abdella's attorney sent a letter of representation to USF&G;requesting that an application for personal injury protection benefits (PIP benefits) be sent to him. The letter also requested that all correspondence with respect to Abdella's claim be sent to the attorney. In response, USF&G;mailed the application with a cover letter which requested the attorney's permission to allow USF&G;to obtain a statement from Abdella. On November 14, 1988, the form was completed, signed, and returned by Abdella. The form also included a signed medical record authorization form.


On November 17, 1988, USF&G;sent the medical authorization form to the physician named in the PIP form. USF&G;requested that he furnish all information concerning Abdella's condition. USF&G; however, did not receive any of the requested information, or any of Abdella's medical bills.


On March 16, 1989, USF&G;wrote to Abdella's attorney, informing him that it had not received any medical reports or bills, and requesting that he contact USF&G;to schedule an independent medical examination of Abdella. After he failed to respond, USF&G;wrote to the attorney on April 28, stating that it would not pay any of Abdella's medical bills after March 16, 1989, because of the attorney's failure to allow USF&G;to schedule an independent medical examination. USF&G;also reserved its rights with regard to all optional coverage. On September 25, 1989, USF&G;received the medical reports and bills from Abdella's attorney, with

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