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Regal Insurance Co. v. Canal Insurance Co.2/7/2002
's personal remedy, as the person entitled to PIP benefits, to pursue an action against Canal for prejudgment interest and attorney fees under section 31A-22-309(5). Regal could not bring a subrogation suit seeking those penalties because, as discussed above, Regal is not subrogated to Chatwin's rights. See Ivie, 606 P.2d at 1202. Rather, Regal has a limited remedy of seeking reimbursement for paid PIP benefits in arbitration proceedings under section 31A-22-309(6). The prejudgment interest and attorney fees provisions of section 31A-22-309(5) are therefore inapplicable in this case.
CONCLUSION
Regal may not pursue a subrogation suit against Canal for the $3,000 in PIP benefits Regal paid to Chatwin. Regal may, of course, seek reimbursement of the PIP benefits in arbitration proceedings. Because this dispute properly belongs in arbitration, Regal is not entitled to an award for litigation costs. Finally, the prejudgment interest and attorney fees provisions of section 31A-22-309(5) do not apply.
Accordingly, we vacate the trial court's award of $3,000 in PIP benefits, costs, prejudgment interest, and attorney fees and remand to the trial court with instructions to dismiss this action.
Russell W. Bench, Judge
WE CONCUR:
Judith M. Billings, Associate Presiding Judge
Pamela T. Greenwood, Judge
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