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Gordon v. G.R.O.U.P.9/27/1996
PHELAN, J. and contractual arbitration for claims under the uninsured motorist provisions of GROUP's insurance policy (Ins. Code, ยง 11580.2).
We conclude that the trial court acted within its authority and discretion when it ordered the parties to proceed simultaneously with the judicial arbitration and the uninsured motorist arbitration before a court-appointed arbitrator, and correctly concluded that the arbitrator's award under GROUP's uninsured motorist coverage is binding on appellants. Accordingly, we affirm.
I. FACTUAL AND PROCEDURAL BACKGROUND
The underlying facts of this case are very simple, and essentially undisputed. On December 24, 1991, respondents were passengers in a van driven by Sally and owned by GROUP. As Sally backed the van into the street, it was hit by a Chevrolet Camaro, which was owned by Johnson. Johnson was not insured and the driver of Johnson's car, who had allegedly stolen the vehicle, was never identified after fleeing the scene of the accident. Respondents incurred medical expenses ranging from $1,255 to $3,500, and claimed wage loss as a result of the incident. GROUP was either self-insured or insured by Paratransit. Sally was insured through GROUP, and ultimately recovered benefits pursuant to GROUP's uninsured motorist coverage.
The procedural history of the case is far more complicated. Respondents' first amended complaint was filed on December 22, 1992, against GROUP (for negligently training or supervising Sally as a driver), Sally (for negligent operation of the van), Johnson (for negligent operation or entrustment of the Camaro), and the Camaro driver (as a Doe defendant). GROUP and Sally filed a joint answer to the main complaint denying liability, and a cross-complaint against Johnson and the Camaro driver for indemnity and property damage. Sally also retained separate counsel, John McDougall, to proceed on a cross-complaint against GROUP, Johnson and the Camaro driver for personal injuries, indemnity, and property damage. Because of the conflict between GROUP and Sally, GROUP initially had two sets of attorneys in the proceedings below, as follows: Walter K. Dods, to defend GROUP and Sally on the main complaint and to prosecute the cross-complaint against Johnson and the Camaro driver; and Patricia M. Fama, of St. Clair, McFetridge & Griffin (the St. Clair law firm), to defend GROUP against the uninsured motorist claims alleged in Sally's cross-complaint. The St. Clair law firm represents appellants GROUP and Paratransit in this appeal.
On May 21, 1993, the trial court issued an order to show cause for failure to follow the local rules. In response to the order to show cause, GROUP (through Ms. Fama) argued that Sally was making an uninsured motorist claim, and should do so only in a "binding arbitration between and Sally under the provisions of the Insurance Code." "In order to invoke the provisions of Insurance Code Section 11580.2," Ms. Fama continued, "Sally need only demand arbitration." However, Ms. Fama objected to a "combined" arbitration of respondents' complaint and Sally's cross-complaint.
On June 14, the court notified the parties that the case had been assigned to judicial arbitration, and sent a list of proposed arbitrators. The hearing in the judicial arbitration was set for August 12.
On July 23, GROUP (through Ms. Fama) moved for judgment on the cross-complaint or, in the alternative, to sever Sally's cross-complaint and compel arbitration of the cross-action under Insurance Code section 11580.2. In this latter regard, Ms. Fama asserted that GROUP is "self-insured." Respondents opposed GROUP's motion, suggesting that the court instead hold a case manageme
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