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Schilling v. Allstate Insurance Co.5/19/1999
Boise, January 1999 Term
1999 Opinion No. 51
Frederick C. Lyon, Clerk
Appeal from the District Court of the Fourth Judicial District of the State of Idaho, Ada County. Hon. Deborah A. Bail, District Judge.
Appeal from an order modifying an arbitration award to include prejudgment interest. Affirmed.
This is an appeal from a district court order adding prejudgment interest to an arbitration award rendered pursuant to a claim under an underinsured motorist provision of an insurance policy.
I.
FACTS AND PROCEDURAL BACKGROUND
On July 11, 1996, Anthony Schilling (Schilling) was seriously injured in a motorcycle accident when the driver of another car turned left in front of him. Schilling received $25,000 from the other driver which was the limit of her insurance policy coverage. He then filed a claim with his insurance company, Allstate Insurance Company (Allstate), under an underinsured/uninsured motorist provision of his policy. On May 8, 1997, following arbitration pursuant to the terms of the insurance policy, the arbitration panel awarded Schilling $98,000. The amount received from the other driver was subtracted for a total award of $73,000. The Arbitration Award expressly stated that the panel declined to award prejudgment interest or attorney fees because of their belief that they did not have jurisdiction to do so.
On May 14, 1997, the Schillings filed a petition for confirmation of the Arbitration Award and for prejudgment interest and attorney fees. Subsequently, the Schillings withdrew their claim for attorney fees. On October 29, 1997, following cross-motions for summary judgment, the district court modified the award to include prejudgment interest on the award from the date of the accident. On February 27, 1998, the district court denied Allstate's petition for reconsideration, rejecting Allstate's argument that the policy itself precluded the award of prejudgment interest. Allstate appealed, asserting that the district court erred by modifying the Arbitration Award to include prejudgment interest.
II.
ISSUES ON APPEAL
Appellant presents the following issue on appeal:
1. Whether the district court erred in modifying the arbitration award to include an award of pre-award interest.
Respondents present the following additional issue on appeal:
2. Whether respondents are entitled to attorney fees and costs on appeal.
III.
ANALYSIS
The standard by which we review an order granting summary judgment is the same standard used by the lower court in ruling on a motion for summary judgment. See State v. Rubbermaid, Inc., 129 Idaho 353, 355-56, 924 P.2d 615, 617-18 (1996). On review, all disputed facts are to be liberally construed in favor of the non-moving party, and all reasonable inferences that can be drawn from the record are to be drawn in favor of the non-moving party. See id. at 356, 924 P.2d at 618. Summary judgment is appropriate "if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." I.R.C.P. 56(c).
A. The District Court Did Not Err In Modifying The Arbitration Award To Include Pre-award Interest.
Appellant first argues that the district court misconceived the scope of the arbitration panel's authority to award prejudgment (pre-award) interest as an "other expense" pursuant to section 7-910 of the Idaho Code. This Court recently made clear that I.C. ยง 7-
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