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Bullard v. California State Automobile Association5/10/2005
Morgan stated that the Bullards had demanded arbitration by letter in February 2003.
Lowry reviewed the letter dated February 10, 2003, and found no demand for arbitration. She contacted Morgan and informed him that the letter was insufficient to preserve the Bullards' right to arbitration under the policy.
On June 19, 2003, (one year and three days after the collision) the Bullards filed their personal injury action against Hall, the driver of the pickup, and John Luntey, its owner.
On September 9, 2003, CSAA denied the Bullards' uninsured motorist claim on the ground that the Bullards had failed to preserve their right to arbitrate the first party claim under the automobile liability insurance policy and section 11580.2. The Bullards responded that the Governor had just signed legislation extending the statute of limitations for uninsured motorist claims to two years, effective January 1, 2004. CSAA maintained that the change in law was not retroactive.
The Bullards filed their petition to compel arbitration on March 5, 2004. The trial court granted CSAA's motion for relief under Code of Civil Procedure section 473 to file their opposition to the petition to compel arbitration, after the filing deadline had passed. Following oral argument on April 12, 2004, which was not reported, the trial court denied the Bullards' petition. The court found that: (1) the amendment to section 11580.2 was not retroactive; (2) the February 2003 correspondence was "insufficient to lead a reasonable person to conclude that arbitration was being demanded"; (3) the Bullards therefore failed to comply with the terms of section 11580.2, subdivision (1)(C); (4) section 11580.23 did not alter the requirement that the Bullards preserve their rights under the provisions of section 11580.2; and (5) there was no factual basis for estoppel. We shall affirm the order.
DISCUSSION
I. The 2003 Amendment To Section 11580.2 Is Not Retroactive
The Bullards argue that the trial court misread the Legislature's intent when it ruled that the 2003 amendment to section 11580.2, subdivision (i), that changed the limitations period from one to two years, was not retroactive.
In 2003, section 11580.2, subdivision (i) read in relevant part:
"(1) No cause of action shall accrue to the insured under any policy or endorsement provision issued pursuant to this section unless one of the following actions have been taken within one year from the date of the accident:
"(A) Suit for bodily injury has been filed against the uninsured motorist, in a court of competent jurisdiction.
"(B) Agreement as to the amount due under the policy has been concluded.
"(C) The insured has formally instituted arbitration proceedings by notifying the insurer in writing sent by certified mail, return receipt requested. Notice shall be sent to the insurer or to the agent for process designated by the insurer filed with the department." (See Historical and Statutory Notes, 43 West's Ann. Ins. Code (2005 supp.) foll. § 11580.2, p 160.)
The Legislature amended section 11580.2, subdivision (i) in 2003, changing the limitations period from one to two years. (Stats. 2003, ch. 56, § 1, pp. 1, 9.) The Governor approved the bill on July 14, 2003, and it became effective on January 1, 2004. (Id. at p. 1; Cal. Const., art. IV, § 8, subd. (c), par. (1).)
" he objective of statutory interpretation is to ascertain and effectuate legislative intent. [Citations.]" (Burden v. Snowden (1992) 2 Cal.4th 556, 562.) A statute is retrospective or retroactive, if it affects "`rights, obligations, acts, transactions and c
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