Arizona Court Upholds $7,500 Arbitration in Underinsured Motorist Claim

In October 2008, a plaintiff sustained injuries in a car accident. The adverse driver admitted liability, and the plaintiff sought $15,000, the full coverage amount of the adverse driver's insurance policy, as compensation. Alleging insufficient compensation, the plaintiff filed an underinsured motorist claim with her own insurer, Progressive Preferred Insurance Company, for total medical damages of $25,524.59.

The defendant insurer agreed to cover emergency room treatment and a follow-up visit but disputed other medical expenses, including knee surgery, asserting they were not causally related to the accident due to the plaintiff's pre-existing injuries from a May 2007 slip and fall. Pursuant to an arbitration provision in the insurance contract, the parties submitted their dispute to arbitration in May 2013. The arbitrator awarded the plaintiff $7,500 in damages.

In September 2013, the plaintiff filed a complaint in the Arizona Superior Court for Maricopa County, seeking to vacate, amend, or set aside the arbitration decision. In December 2013, the court denied the plaintiff's requested relief, thereby upholding the arbitration award. The court subsequently denied the defendant insurer's request for an award of attorneys' fees and costs. The judgment was later affirmed on appeal.