Progressive v. State Farm, Unpublished Decision (8-14-2003)
Progressive v. State Farm, Unpublished Decision (8-14-2003)
Opinion of the Court
{¶ 2} This case involves three separate disputes between Progressive and State Farm regarding liability coverage under each company's policy of insurance. Progressive claimed that both policies owed coverage on an excess basis and that the liability claims should be paid on a pro-rata basis. State Farm refused to participate in the resolution of the claims, maintaining that its policy of insurance was only excess to the coverage provided by Progressive.
{¶ 3} Pursuant to the Special Arbitration Agreement of Arbitration Forums, Inc., to which both parties are signatory members, the disputes were submitted to binding arbitration. Pursuant to the rules of the Agreement, the arbitration panel may not enter a default judgment in the event that the respondent company fails to answer the complaint. Rather, the applicant company is required to establish its position and entitlement to the award to the satisfaction of the panel.2
{¶ 4} On June 13, 2002, a final and binding arbitration decision was entered in favor of State Farm and against Progressive in all three cases. Although State Farm failed to answer, the arbitrator found that Progressive had "failed to prove its contentions against State Farm * * *." Following each of the decisions, under the heading of "PANEL COMMENTS," the assigned arbitrator noted that State Farm's policy wording and limits were "not available" and therefore a "pro-rata determination could not be determined."
{¶ 5} On September 5, 2002, Progressive filed motions to modify/vacate the arbitration awards in Cuyahoga County Common Pleas Court pursuant to R.C.
{¶ 6} On November 12, 2002, State Farm filed motions to dismiss the complaints filed by Progressive on the grounds that none of the motions contained the statutory grounds mandated by R.C.
{¶ 7} Progressive timely appealed raising the following assignment of error.
{¶ 8} "I. Whether the trial court committed reversible error in granting appellee's motion to dismiss appellant's complaint in which appellant sought the modification, vacation and/or correction of a binding and final arbitration decision entered in favor of appellee."
{¶ 9} Under Ohio law, arbitration awards are presumed valid and an appellate court may not substitute its interpretation of a contract provision for that of an arbitrator selected by the parties. Findlay CitySchool Dist. Bd. of Edn. v. Findlay Edn. Assn. (1990)
{¶ 10} Here, Progressive and State Farm were signatory members of Special Arbitration. Pursuant to Article IV of the Special Arbitration Agreement, a decision by the arbitrators is "final and binding without the right of rehearing or appeal, as to the claim or suit arbitrated." Where, as here, a matter is submitted to binding arbitration, the subject matter jurisdiction of the common pleas court to review the arbitration awards is limited to the following grounds:
{¶ 11} "(A) The award was procured by corruption, fraud, or undue means.
{¶ 12} "(B) There was evidence of partiality or corruption on the part of the arbitrators, or any of them.
{¶ 13} "(C) The arbitrators were guilty of misconduct in refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy; or of any other misbehavior by which the rights of any party have been prejudiced.
{¶ 14} "(D) The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made."
{¶ 15} R.C.
{¶ 16} Here, the record shows that the trial court properly dismissed Progressive's complaints since none of the allegations contained therein fell within the limited jurisdiction of the common pleas court granted by R.C.
Judgment affirmed.
FRANK D. CELEBREZZE, JR., P.J., and DIANE KARPINSKI, J., concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.