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Trial Court Decision On Underinsured Motorist Decision Binding Third Party CaseRecent case from Beaver County in Catroppa v. Carlton, 63 Beaver Co. L. J. 9 (2008) held that the decision of a board of arbitrators in an underinsured motorist (UIM) proceeding was binding upon the third party case when the third party is insured with the same insurance company as in the UIM claim and their is only an issue of damages. In this case, the insured went through arbitration first with State Farm and was awarded $100,000. The third party was insured for $50,000 so the UIM award was reduced to $50,000. The Plaintiff then filed a Motion for Summary Judgment arguing that the third party (also insured by State Farm) was bound by the UIM award. the Court granted the motion and held under "offensive" collateral estoppel an insurance company is limited from re-litigating the damages issue when it insures both the defendant in the third party case and the Plaintiff in the UIM case arising out of the same accident when liability is not an issue. Thanks to Bill Mabius for bringing this to our attention.
Scott B. Cooper
scooper@schmidtkramer.com
717-232-6300
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